On-Premises Software
On-Premises Software
On-Premises Software refers to software that is installed and operated on an organisation’s own servers or computers, allowing them to have complete control over its management, security, and availability. In contrast to cloud-based software, it is not hosted by a third-party cloud service provider.
What does On-Premises Software mean?
On-premises software refers to software applications that are installed and run on an organization’s own computers or servers within their physical infrastructure. It contrasts with cloud-based software, also known as Software as a Service (SaaS), which is hosted and managed by a third-party provider over the internet.
On-premises software grants organizations complete control over the hardware, software, and data, allowing for customization, integration with existing systems, and enhanced security. However, it also entails significant upfront costs for hardware and software acquisition, installation, maintenance, and support. Organizations must allocate IT resources for ongoing management and ensure Compliance with regulatory and security standards.
Applications
On-premises software remains essential for various reasons. It provides organizations:
- Ownership and Control: Organizations retain full ownership of the software and data, allowing them to customize, modify, and integrate the applications according to their specific business needs.
- Data Security: Sensitive or confidential data remains within the organization’s physical infrastructure, reducing the risk of data breaches and unauthorized Access.
- Customizability: On-premises software can be tailored to meet the organization’s unique requirements, improving efficiency and productivity.
- Performance: Running software on local servers often results in faster operation and reduced latency, especially for applications that require high Processing power or Real-Time data processing.
- Regulatory Compliance: Certain industries have strict regulatory requirements that prohibit data storage in the cloud, making on-premises software indispensable.
History
The concept of on-premises software originated alongside the advent of personal computers and local area networks (LANs) in the 1980s. Prior to that, software was typically distributed on floppy disks and installed on each individual computer.
With the proliferation of LANs, organizations could centralize software installations and data storage on shared servers. This enabled multiple users to access the same applications and data from their workstations, enhancing collaboration and efficiency.
As businesses grew in size and complexity, enterprise resource planning (ERP) systems and other mission-critical applications became prevalent. These applications required significant computational resources and specialized hardware, leading to the widespread adoption of on-premises software deployments within dedicated server rooms and data centers.