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On-premises software

On-premises software (often abbreviated as on-prem software, and also often incorrectly called “on-premise” software) is installed and run on computers on the premises (in the building) of the person or organisation using the software, rather than at a remote facility, such as at a server farm or cloud somewhere on the internet. On-premises software is sometimes referred to as “shrinkwrap” software, and off-premises software is commonly called “software as a service” or “computing in the cloud”.
The on-premises approach to deploying and using business software was the most common until around 2005, when software running at a remote location became widely available and adopted.[citation needed] The new, alternative deployment and use model typically uses the Internet to remove the need for the user to install any software on premises and had other accompanying benefits: running software remotely can result in considerable cost savings because of reduced staffing, maintenance, power consumption, and other factors.
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