On-premise definition & meaning
On-premise, also known as on-prem, refers to hardware infrastructure and software are deployed and running within the physical location of the organization. In on-premise systems, the data stays in the organization’s private network, thus the organization has complete control over the infrastructure. On-premise software requires the server and the end-user to have a license to be able to use the software.
The on-premise model is an expensive solution compared to the cloud or other models. On-premise deployments require hardware investment, software licenses, and in-house IT professionals to be able to provide service. In the on-premise model, the organization is responsible for security and management. Although it is considered very a secure model it can be affected by local internet or power outages or failure of the SaaS provider. To avoid such risks, most organizations are adopting the hybrid model, where it runs some workload on-premises and host others at cloud providers. With the hybrid approach, the organization still has complete control over its business-critical or privacy-sensitive data hosted on-premise.
What are the differences between on-premise and off-premise?
One of the main differences between on-premise and off-premise is the cost. In on-premise, the users should pay heavy upfront costs and high maintenance costs. Compared to on-premise, off-premise is a more affordable solution. The off-premise costs are also more predictable. On the other hand, on-premise architecture is considered more secure since all the data resides in-house. In off-premise solutions, a third party is responsible for the security and maintenance, which can be an advantage or disadvantage for some organizations.
Similar to off-premise, in cloud deployments, the service providers are responsible for the maintenance and the security of the servers. Since the cloud is much more affordable than on-premise systems, smaller organizations mostly prefer cloud solutions. Most cloud service providers offer flexibility to scale the system according to the customer’s needs. For smaller businesses, the cloud could be a better option than on-premise, however, on-premise is a more secure solution for hosting business-critical or privacy-sensitive data.