What is On-Premises or On-Prem?

"On-prem," short for "on-premises," refers to the location and management of servers, resources, and IT infrastructure. When software or services are described as on-prem, it means they are installed and run on computers on the premises (in the physical location) of the organization using the software, rather than at a remote facility such as a server farm or cloud.

On-prem solutions are traditionally associated with a company’s own data center where the company is responsible for the maintenance, management, and security of the IT environment. This contrasts with cloud-based services, where the service provider is responsible for managing the infrastructure.

Here are some key aspects of on-prem deployments:

  • Control: Organizations have full control over their hardware and software.
  • Security and Compliance: Some organizations opt for on-prem to meet specific security or compliance requirements.
  • Cost: On-prem requires upfront capital expenditure for hardware and ongoing operating expenses for maintenance and upgrades.
  • Customization: On-prem solutions can be highly customized to meet the specific needs of an organization.

On-prem environments are often chosen for their enhanced control and security, but they also require significant investment in both the capital expenditure on hardware and operational costs for maintenance. With the increasing adoption of cloud services, many organizations are moving away from on-prem solutions or adopting hybrid approaches that combine on-prem with cloud services.