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On-premises infrastructure and software are operated by the user. The term is often used in opposition to on-demand and cloud computing. The user incurs the expenses necessary for the maintenance and operation of software and hardware. He has full responsibility for the operation of the software and is responsible for maintenance. An important advantage of this usage model is that the licensee retains full control over all of their data and the operation of the software.

As part of an infrastructure, a company can own or lease all or part of a data center. For software, it is installed and operated by the user, whether the servers are physical or virtual and whether they are hosted in their data center or in the cloud.

Typical users of the on-premises model are businesses and organizations that collect and process sensitive data that cannot or should not be outsourced to third-party data centers.

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