On-premises software advantages

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Despite all the trends about and putting your data online, many companies still prefer hosting everything on internal servers. Although this means a significant investment in IT equipment, infrastructure, licenses, and support personnel, on-premises software advantages have some significant privileges over cloud-hosted software, which we will discuss later on in the article.

What is on-premises software

With on-premises software, from implementation to running of the solution, everything is done internally; whereby maintenance, safety and updates also need to be taken care of in-house.
With on-premises software, the company remains responsible for maintaining the solution and related processes. The deployment is done in house using the company’s infrastructure.

On-premises software is installed and runs on computers on the premises of the person or organization using the software, rather than at a remote facility such as a server farm or cloud.
With this usage model, a customer often buys or rents server-based software as a licensee, which is installed on their own servers or rented servers.

It is more expensive than on-demand or cloud software because it requires in-house server hardware, capital investment in software licenses, in-house IT support staff and longer integration periods. However, on-premises software is considered more secure, as the entire instance of software remains on the organization’s premises.

Many companies opt for on-prem because it doesn’t require third-party access, gives owners physical control over the server hardware and software, and does not require them to pay month after month for access.

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On-premises software advantages

  • On-premise applications are reliable, secure, and allow enterprises to maintain a level of control that the cloud often cannot. 
  • In an on-premises environment, enterprises retain all their data 
  • Companies that have extra sensitive information, such as government and banking industries must have a certain level of security and privacy that an on-premises environment provides. 
  • Access to data is always ensured – even without an internet connection.
  • The licensed software can be integrated deeper into the customer’s infrastructure and interlinked with other programs.
  • Annual maintenance costs and one-time license fees are lower compared to paying recurring expenses associated with cloud software.
  • Multiple users can also access the system simultaneously without affecting the speed.
  • Since you’ll handle all of the on-premises software yourself, you’ll likely be able to customize it much more than if you were subscribing to a cloud-based system.
  • It’s typically easier to install extra data protection tools to data and programs based on an on-premises system rather than a cloud-based one.
  • You decide on the configuration, the upgrades and system changes.

I hope you found this article with on-premises software advantages useful! And if you need any help with on-premises software solutions, let us know! We can help! Also, we have B2B2C customer identity and access management solution that can be installed on-premises and that can help you speed up time to market and decrease costs.


  • Ekaterina Novoseltseva

    Ekaterina Novoseltseva is an experienced CMO and Board Director. Professor in prestigious Business Schools in Barcelona. Teaching about digital business design. Right now Ekaterina is a CMO at Apiumhub - software development hub based in Barcelona and organiser of Global Software Architecture Summit. Ekaterina is proud of having done software projects for companies like Tous, Inditex, Mango, Etnia, Adidas and many others. Ekaterina was taking active part in the Apiumhub office opening in Paseo de Gracia and in helping companies like Bitpanda open their tech hubs in Barcelona.

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One Comment

  1. Albert

    On-premises software is a type of software delivery model that is installed and operated from a customer’s in-house server and computing infrastructure. It utilizes an organization’s native computing resources and requires only a licensed or purchased copy of software from an independent software vendor.
    For best services i prefer you to contact automated testing service

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