Pros and Cons of On-Premises Software
On-premises software is located and operated within a user’s data center. As such, it uses the user’s computing hardware rather than that of a cloud provider. Also known as “shrinkwrap,” on-premises programs are among the most used enterprise and consumer applications that require licenses per server or computer. Vendors are no longer responsible for their security and overall management but do provide after-sales technical support.
Users have varying requirements and resources. Here are some factors they can consider.
Cost
Advantage
Lower long-term costs: Annual maintenance costs and one-time license fees are lower compared to paying recurring expenses associated with cloud software.
Disadvantage
Requires substantial capital investment for hardware and infrastructure: On-premises software users must deal with ongoing costs related to space, server, and other equipment, along with power consumption.
Control and management
Advantage
Full user control: An on-premises environment allows users complete control and management of assets. That is particularly useful for those who work in highly regulated industries where privacy is a top concern.
Disadvantage
Requires dedicated tech support: Since users have full control and management of all assets, the organization needs a dedicated IT support team.
Security
Advantage
Allows implementation of own security policies and procedures: Industries that deal with sensitive information often prefer to use on-premises software because this gives them more control over security. It allows them to contain information within their walls.
Disadvantage
Requires dedicated tech support: Again, an internal IT support team is needed so users can implement their self-devised security policies.
User access
Advantage
No need for Internet connection: On-premises software can be accessed even without an Internet connection. That makes it useful for areas where there is no reliable Internet connection. Multiple users can also access the system simultaneously without affecting the speed.
Disadvantage
Cannot be accessed while on the go: On-premises systems must be accessed within the vicinity of the user’s office or field. Remote access may be complicated to set up.
Although the importance of cloud computing is steadily growing, on-premises is still the better choice in many cases for companies and organizations. In sectors like finance or healthcare, companies are subject to particularly strict data protection requirements. With on-premises, sensitive data can be protected more effectively from unauthorized third-party access since the company itself manages the data and internal processes. The company defines who gains access to which data.
Source:
https://www.techslang.com/definition/what-is-on-premises/
https://www.merriam-webster.com/dictionary/on%20premises
https://www.ionos.com/digitalguide/server/know-how/what-is-on-premises/