What is onpremise?
Onpremise (often written as “on‑prem”) refers to hardware, software, and data that are installed and run inside a company’s own physical location-like a server room or data centre-rather than being hosted by an outside cloud provider.
Let's break it down
- Hardware: Physical servers, storage devices, networking gear that the company buys and maintains.
- Software: Applications and operating systems installed on those servers.
- Location: All of this sits in the company’s building or a dedicated data‑centre they control.
- Management: The company’s IT team is responsible for setup, updates, security, backups, and troubleshooting.
Why does it matter?
Because the choice between onpremise and cloud affects cost, control, security, and how quickly you can scale. Knowing the differences helps businesses pick the right solution for their needs and compliance requirements.
Where is it used?
- Large enterprises with strict data‑privacy rules (banks, healthcare, government).
- Companies that need very low latency for critical applications (trading platforms, manufacturing control systems).
- Organizations that already own extensive server infrastructure and want to keep using it.
Good things about it
- Full control over hardware, software versions, and security settings.
- Data residency: you know exactly where the data lives, which helps with compliance.
- Predictable performance because resources aren’t shared with other tenants.
- Customizable: you can tailor the environment to very specific technical requirements.
Not-so-good things
- High upfront cost for buying servers, networking gear, and building space.
- Ongoing maintenance: you must staff IT personnel for updates, patches, and hardware repairs.
- Scalability limits: adding capacity requires buying and installing more equipment, which takes time.
- Disaster recovery: you need to design and fund backup sites or replication yourself.