On-premise refers to the software, hardware, or IT infrastructure that is installed and run within the physical confines of an organization's data center, as opposed to being hosted in a cloud environment or a third-party data center. This traditional deployment model provides complete control over the system, offering organizations greater flexibility over how their data is stored, processed, and secured.

On-premise solutions often require substantial upfront investment in servers, networking equipment, storage, and other hardware components. The organization is responsible for managing, securing, and updating the infrastructure, making it a more labor-intensive and resource-heavy option compared to cloud-based solutions. Despite these challenges, many industries—such as finance, healthcare, and government—continue to use on-premise systems due to concerns about data privacy, regulatory compliance, or the need to maintain mission-critical applications with stringent security requirements.

However, as cloud technologies mature, many organizations are transitioning to hybrid environments, integrating both on-premise and cloud solutions to balance control and scalability. This shift allows organizations to leverage the cloud for workloads requiring agility while maintaining on-premise control over sensitive data.