Microsoft's introduction of the Phi-4-reasoning model, a compact yet powerful 14-billion parameter model, offers enhanced reasoning capabilities for complex tasks while outperforming larger models like DeepSeek-R1-Distill-Llama-70B. This model, fine-tuned with chain-of-thought data in subjects like math, science, and coding, is particularly effective in environments with limited memory and compute resources, latency-sensitive applications, and tasks requiring multi-step reasoning. The guide demonstrates how to deploy Phi-4-reasoning using BentoML, providing a step-by-step approach to self-hosting the model as a private API in the cloud, leveraging BentoCloud for AI inference without the burden of managing infrastructure. Users are guided through setting up a local server, deploying to the cloud, scaling deployments, updating inference logic, and monitoring performance, highlighting the ease and efficiency of integrating this model into various workflows.