Cloud Computing
On-Premises
Definition
On-premises (often shortened to "on-prem") refers to software and technology that is located within the physical confines of an enterprise, often in the company's own data center, as opposed to running remotely on hosted servers or in the cloud.
Why It Matters
On-premises was the traditional model of IT before the advent of the cloud. While the cloud is now dominant, some companies still use on-premises infrastructure for reasons of security, control, or regulatory compliance.
Contextual Example
A bank might keep its most critical customer data on-premises in its own highly secure data center, while using the public cloud for less sensitive applications like its marketing website.
Common Misunderstandings
- The opposite of on-premises is cloud.
- An on-premises data center requires the company to manage everything: hardware, cooling, power, networking, and security.