On-premises software

On-premises software, often referred to as on-prem, is a type of software delivery model that is installed and operated from a customer's in-house server.

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On-premises software, often referred to as 'on-prem', 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 hardware, upon which the software is installed directly. This stands in contrast to cloud-based services, which are hosted on the internet. On-premises software can serve a multitude of functions depending on the specific software and business requirements.

The term 'on-premises' can be traced back to the advent of cloud services. Before the cloud, virtually all software was on-premises. However, as cloud computing took off, it became necessary to distinguish between software that was installed locally and software that was delivered over the internet. Thus, the term 'on-premises software' was born.

Understanding On-Premises Software

On-premises software is a comprehensive term that covers a wide range of software applications, all of which are installed and run on a user's personal hardware. This can include everything from word processors and spreadsheet programs to more complex customer relationship management (CRM) and enterprise resource planning (ERP) systems.

The defining characteristic of on-premises software is that it's installed directly on a user's hardware, rather than being accessed over the internet. This means that the user has full control over the software and its data, which can be a significant advantage for businesses that require a high level of control or have specific compliance requirements.

Benefits of On-Premises Software

One of the primary benefits of on-premises software is control. Because the software is installed directly on a user's hardware, the user has complete control over the software and its data. This can be particularly important for businesses that have specific compliance requirements or that handle sensitive data.

Another benefit of on-premises software is performance. Because the software is running directly on the user's hardware, it can often perform better than cloud-based software, which can be affected by internet connectivity and speed. Furthermore, on-premises software can be customized to a greater extent than cloud-based software, allowing businesses to tailor the software to their specific needs.

Drawbacks of On-Premises Software

Despite its benefits, on-premises software also has its drawbacks. One of the main drawbacks is cost. On-premises software often requires a significant upfront investment in hardware and software, as well as ongoing costs for maintenance and updates. Additionally, on-premises software requires a higher level of technical expertise to install and maintain, which can be a barrier for some businesses.

Another drawback of on-premises software is lack of flexibility. Unlike cloud-based software, which can be accessed from anywhere with an internet connection, on-premises software is typically only accessible from the user's local network. This can be a disadvantage for businesses with remote workers or multiple locations.

On-Premises Software and Cybersecurity

When it comes to cybersecurity, on-premises software presents both opportunities and challenges. On one hand, because the software and its data are stored locally, businesses have more control over their data and can implement their own security measures. On the other hand, this also means that businesses are responsible for protecting their own data, which can be a significant burden, especially for small businesses.

Furthermore, on-premises software can be more vulnerable to certain types of cyber attacks. For example, if a hacker gains access to a business's network, they may be able to access the business's on-premises software and the data it contains. Additionally, because on-premises software is often customized, it can be more difficult to keep up to date with security patches and updates.

Securing On-Premises Software

Securing on-premises software requires a comprehensive approach that includes both technical and administrative measures. On the technical side, this can include things like installing firewalls and antivirus software, encrypting sensitive data, and regularly updating and patching software. On the administrative side, this can include things like implementing strong password policies, providing cybersecurity training for employees, and developing an incident response plan.

It's also important to regularly assess and update your security measures. Cyber threats are constantly evolving, and what worked yesterday may not work tomorrow. Regular security audits can help identify potential vulnerabilities and ensure that your security measures are up to date.

Best Practices for Using On-Premises Software

When using on-premises software, there are several best practices that can help ensure the security and efficiency of your software. First and foremost, it's important to keep your software up to date. This includes not only the software itself, but also any underlying operating systems or databases. Regular updates can help protect against known vulnerabilities and ensure that your software is running as efficiently as possible.

Another best practice is to regularly back up your data. This can help protect against data loss in the event of a hardware failure or cyber attack. Additionally, it's important to monitor your software and systems for any signs of unusual activity. Early detection can often be the key to preventing a minor issue from becoming a major problem.

Choosing Between On-Premises and Cloud-Based Software

When choosing between on-premises and cloud-based software, there are several factors to consider. One of the main factors is cost. While on-premises software often requires a larger upfront investment, it can be more cost-effective in the long run, especially for businesses that already have a significant investment in hardware. On the other hand, cloud-based software typically requires a lower upfront investment and offers more predictable ongoing costs.

Another factor to consider is control. If your business requires a high level of control over your software and data, or if you have specific compliance requirements, on-premises software may be the better choice. However, if your business values flexibility and ease of use, cloud-based software may be more suitable.

Considerations for Small Businesses

For small businesses, the decision between on-premises and cloud-based software can be particularly challenging. On one hand, small businesses often have limited resources, which can make the upfront costs of on-premises software prohibitive. On the other hand, small businesses often have specific needs that may not be met by cloud-based software.

One potential solution is to use a hybrid approach, where some software is hosted on-premises and some is hosted in the cloud. This can provide the benefits of both models, while mitigating some of the drawbacks. However, a hybrid approach can also be more complex to manage, so it's important to carefully consider your business's needs and capabilities before choosing this option.

Considerations for Large Businesses

For large businesses, the decision between on-premises and cloud-based software can also be complex. Large businesses often have more resources to invest in hardware and software, which can make on-premises software a more viable option. However, large businesses also often have more complex needs, which can make cloud-based software a more flexible and scalable solution.

As with small businesses, a hybrid approach may be the best solution for some large businesses. However, large businesses also have the resources to invest in a fully on-premises or fully cloud-based solution, if that's what best meets their needs. As always, the key is to carefully consider your business's specific needs and capabilities before making a decision.


On-premises software is a powerful tool that can provide businesses with a high level of control and performance. However, it also comes with its own set of challenges, particularly in terms of cost, flexibility, and cybersecurity. Whether on-premises software is the right choice for your business depends on a variety of factors, including your business's size, resources, and specific needs.

Regardless of whether you choose on-premises or cloud-based software, it's important to take a proactive approach to cybersecurity. This includes keeping your software and systems up to date, regularly backing up your data, and implementing strong security measures. By doing so, you can help protect your business from cyber threats and ensure the integrity of your data.

Author Sofie Meyer

About the author

Sofie Meyer is a copywriter and phishing aficionado here at Moxso. She has a master´s degree in Danish and a great interest in cybercrime, which resulted in a master thesis project on phishing.

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