An on-premise solution is the opposite of a cloud solution and involves installing the on-premise software on a company's own hardware, especially for companies with high data protection requirements.
Sensitive data remains in the company's own system. The data is managed internally rather than on an external server. Users maintain the software themselves and take care of updates. This gives companies complete control over their own IT infrastructure.
However, a lot of effort is required for installation and maintenance. There are also many costs for in-house IT hardware or IT personnel. If the company's requirements increase, the on-premise solution is difficult to scale. The use of on-premise solutions is therefore minimized, as cloud solutions are more flexible and more scalable.