What is on premise software?

What is on premise software?

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On-premise software, also known as on-prem software or on-premises software, refers to software applications that are installed and run on computers or servers located within an organization’s physical premises. Unlike cloud-based software, which is hosted and accessed over the internet, on-premise software is installed locally and operated within the organization’s own infrastructure. In this article, we will explore the characteristics, advantages, and considerations associated with on-premise software.

Characteristics of On-Premise Software

Installation: On-premise software requires installation on the organization’s hardware infrastructure. This involves setting up servers, configuring networks, and installing the software on individual machines or servers.

Control: With on-premise software, organizations have full control over their software environment. They can customize and configure the software to meet their specific needs, integrate it with other systems, and manage data storage and security.

Maintenance: Organizations are responsible for maintaining and updating on-premise software. This includes applying patches, bug fixes, and updates, as well as managing backups and ensuring the software remains secure.

Security: On-premise software offers organizations greater control over data security. Since the software and data reside within the organization’s infrastructure, they can implement their own security measures and protocols to protect sensitive information.

Advantages of On-Premise Software

Data Control: On-premise software allows organizations to have complete control over their data. They can ensure compliance with data privacy regulations, implement their own security measures, and have direct access to their data without relying on external providers.

Customization: On-premise software offers greater flexibility for customization. Organizations can tailor the software to their specific requirements, integrate it with existing systems, and develop custom features and functionalities.

Performance: Since on-premise software runs locally, it can offer faster performance and response times compared to cloud-based solutions. Organizations can optimize their infrastructure to meet their performance needs and have more predictable performance levels.

Offline Access: On-premise software allows users to access and use the software even when there is no internet connection. This can be crucial for organizations operating in remote areas or in situations where internet connectivity is limited or unreliable.

Considerations for On-Premise Software

Cost: On-premise software typically involves higher upfront costs compared to cloud-based solutions. Organizations need to invest in hardware, infrastructure setup, software licenses, and ongoing maintenance. However, over the long term, the cost may balance out as there are no recurring subscription fees.

Scalability: Scaling on-premise software can be more complex and time-consuming compared to cloud-based solutions. Organizations need to plan and invest in additional hardware and infrastructure as their needs grow. This can involve significant upfront costs and may require expert IT resources.

Expertise: Managing on-premise software requires specialized IT expertise. Organizations need to have skilled personnel who can handle installation, maintenance, security, and troubleshooting. This can be a challenge for smaller organizations with limited IT resources.


On-premise software offers organizations control, customization, and data security. It allows for greater flexibility and performance, as well as offline access. However, it comes with higher upfront costs, scalability challenges, and the need for specialized IT expertise. Organizations should carefully consider their specific requirements and evaluate the pros and cons before deciding whether on-premise software is the right choice for their business.


– Microsoft: https://www.microsoft.com
– Oracle: https://www.oracle.com
– SAP: https://www.sap.com
– IBM: https://www.ibm.com

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