What is On Premises Software?

RESOURCES > GLOSSARY

On Premises Software Definition

On-premises software is an application that is installed and run on an organization’s own hardware infrastructure and hosted locally, as opposed to being hosted in the Cloud or on the server of a third-party provider. This means that the company is responsible for the software’s maintenance, updates, and security.

Typically, a company purchases on-premises software and installs and configures it on their own servers. This requires in-house hardware, software licenses, and IT resources. Compared to a cloud computing infrastructure which is usually sold on a subscription basis, the upfront installation and maintenance cost for on-premises software is significantly higher.