For me, thinking about risk profile, local is the way to go. With cloud computing many feared of trasnfering data to the cloud and loosing the ownership. While that had some merit, there were no infrastructure to actually abuse the situation where vendor can realistically understand or use your data.

In LLM world model provider has the opportunity to understand and use the information you value as a company. Append this with regulatory requirements and local, even if less able models, are the way to go