“On premises” also referred to as on-premise, on-premises, or on-prem, is a method of deploying software. With on-prem the computer programs are installed right on the user’s computer through CDs or USB drives. Whereas with off-premise, the installer can be anywhere on the web.

Many companies opt for on-prem because it doesn’t require third-party access, gives owners physical control over the server hardware and software, and does not require them to pay month after month for access. Think of how you buy your fast food meal.

You could buy it and eat it “on premise” at the fast food restaurant. Or you can call and order your meal, and have it delivered to your home.

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Read More about “On Premises”

On-premises software is located and operated within a user’s data center. As such, it uses the user’s computing hardware rather than that of a cloud provider. Also known as “shrinkwrap,” on-premises programs are among the most commonly used enterprise and consumer applications that require licenses per server or computer. Vendors are no longer responsible for their security and overall management but do provide after-sales technical support.

On-Premises Versus Cloud Software

Compared with cloud software, on-premises applications are much more expensive. Apart from spending on licenses, users also need to purchase hardware and hire IT support personnel to maintain them. Integrating them into existing systems and processes may also take time. But a lot of users prefer this because it is more secure compared with cloud software.

Additionally, since the software is installed and operated within the confines of the user’s network, security and IT personnel can directly access it. This setup gives them direct control over its configuration, management, and security.

Key Differences Between On-Premise and Cloud Software

Users have varying requirements and resources, and so can choose between on-premises and cloud software based on these. Here are some factors they can consider:

  • Cost: On-premise software users must deal with ongoing costs associated with space, server and other hardware, and power consumption. Using cloud software, on the other hand, only requires them to pay for the infrastructure they use, which does not include maintenance costs.
  • Control and management: An on-premises environment allows users full control and management of all their assets, which is particularly useful for those who work in highly regulated industries where privacy is a top concern. Cloud computing users often deal with issues concerning responsibility. For example, there have been instances where users fail to access assets because their vendor has the encryption keys.
  • Security: Industries that deal with highly sensitive information often prefer to use on-premises software because this gives them more control over security. It allows them to contain information within their walls. Not all cloud providers offer excellent protection, and once hacked, all of the data in their infrastructure are at risk of theft or leakage.