What does on-premises mean?

On-premises (or "on-prem" as an informal abbreviation for "on-premises") refers to software or IT infrastructure that is installed and operated within an organization's own local computing environment, rather than being hosted or managed by a third-party cloud provider.

The key points about on-premises software and IT are:

• It is installed and runs on computers and servers located on the premises (physical location) of the organization using the software, not in a remote data center or cloud.
• The organization is responsible for the hardware, software, maintenance, security, and operations of the on-premises IT infrastructure.
• This contrasts with cloud-based or "off-premises" software that is hosted and managed by a third-party provider and accessed over the internet.