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AI coding agents should be moved from local developer machines to the cloud to achieve better control, governance, security, and measurable ROI. The current approach of treating agents as individual developer tools leads to inconsistent productivity, unpredictable costs, and security vulnerabilities. The proposed solution is a "cloud software factory," an automation loop around the software development lifecycle where agents are managed centrally. This cloud-based system allows companies to control agent capabilities, standardize models, and manage costs, while still permitting interactive development on controlled remote machines.