The term On-Premise indicates on-site software installed and managed through local computers at a business as opposed to Off-Premise or Cloud Computing services.
This type of solution allows exclusive control over the fundamental hardware infrastructures for delivering the ICT services the enterprise needs. It is therefore essential to maintain and update not only software but also proprietary servers.
The main difference between the two types of service delivery is related to the investment methods. An On-Demand payment is defined for the cloud (ie, it is paid only on the basis of actual consumption), while for On-Premise services there is a traditional initial investment in addition to maintenance and upgrade.