On-premise software

On-premise software is purchased under a buying or rental license and operated on the company's own (or rented) hardware, in internal or external data centers under its own responsibility.


Sensitive company data and applications can be stored and operated on an on-premise basis under complete control of the company. The choice of location can also play a role if the software operation is to meet German data protection requirements, for example.


In contrast, cloud computing, in which external IT infrastructures from a third-party provider are used for software operation and data management. See also SaaS and ASP.