Glossary What is On-Premises?
By null / 1 Jan 2023 / Topics: Modern infrastructure Software Cloud
On-premises refers to IT infrastructure hardware and software applications that are hosted on-site. This contrasts with IT assets that are hosted by a public cloud platform or remote data center. Businesses have more control of on-premises IT assets by maintaining the performance, security and upkeep, as well as the physical location.
Many legacy and traditional data center resources are on-premises. There has been a shift to migrate IT assets to the cloud in recent years or creating hybrid environments that use a mix of cloud and on-premises solutions.
Many organizations continue to use on-premises for compliance purposes, due to this platform type being an ideal option to meet single-tenancy requirements. Both on-premises and public cloud options are robust and offer highly secure data encryption. If your organization requires custom hardware and business-specific procedures, on-premises is the best option for creating a purpose-built system. While scaling up and down on a public cloud is easier, an on-premises solutions offers more control and customization options.
What is on-premises software?
On-premises can also refer to software solutions. On-premises software is a type of software option where an organization hosts the software from their servers or end-user devices and is a traditional way to purchase software
When choosing on-premises software, an organization typically purchases a certain number of licenses. These licenses grant the organization ownership of the software. The initial investment of on-premises software can be costly, as the organization is required to purchase all software at once. Upfront payments often require the organization to spend a significant amount as opposed to Software as a Service (SaaS) models that are typically cloud-based.
SaaS operates as a subscription where organizations pay a recurring fee to access software. This model offers several advantages over on-premises software such as scalability, cost control and reduced upfront investment. The SaaS model offers a more flexible pay-as-you-go alternative to on-premises software.
