On-premises (sometimes referred to as “on-premise” or “on-prem”) refers to software resources that are hosted and deployed on-site, within an organization’s own physical computers and servers. Until the advent of cloud computing (where resources are hosted off-site via virtual servers), this was standard practice; the term “on-premises” was devised to distinguish this more traditional model from the more modern cloud-based approach.
Before switching to a cloud-based delivery model, widely-used software packages such as Microsoft Office and Adobe Creative Suite were required to be installed on-premises to a local computer. Nowadays, the on-premises model is increasingly giving way to cloud computing via on-demand Software as a Service (SaaS) solutions, where software is available remotely and can be accessed off-site.
While many organizations have already migrated their IT resources from on-premises to the cloud (benefitting from added flexibility, enhanced scalability and reduced costs), many legacy systems still exist within an on-premises environment. The cloud will largely replace the need for on-premises data centers in future, but some businesses may choose to retain some on-premises functions.
In an “on-prem” model, a client purchases or leases server-based software as a licensee, and then installs it on their personal or rented servers. This is also referred to as “in-house”, because the licensee operates the software in their own data center using their own (or rented) hardware. Customers of on-premises models have total accountability for their data and are responsible for all associated risks, in contrast to cloud computing where this is typically managed by a third-party provider.
