On-prem is a model of providing software to the end customer by subscription. The full name of the service is On-Premise.


Customer purchases a license for the required software product. The software is then installed on the customer’s equipment or on leased equipment in the cloud.

Information is stored on dedicated servers and is always available to the client. Payment is made as in the cloud model – by subscription. In other words, the customer receives the software product on its own hardware platform, and pays only for the cost of the license.


Providing a software product using the On-prem model gives the customer the following advantages:

  1. Reliability. All information is stored on the company’s local servers, access to which is regulated by the customer. In the cloud model, data is stored on cloud servers of the provider; optionally: on the customer’s infrastructure.
  2. Flexibility. The On-premise model implies that the customer chooses only those options that he needs for business operations. He can remove unnecessary items or not acquire them at all.
  3. Maintenance. The software maintenance windows are chosen by the customer.
  4. Access. The software is no longer tied to the presence or absence of network access. In case of problems on the ISP side with access to the global network, the client will still have access to working information. The same option serves as the basis for building a so-called “restricted site” if this is needed.

The total cost of the product is not low, but the subscription payment levels out the total price. The customer pays only as needed. If the program is no longer in demand, he simply cancels the subscription.


It is worth mentioning such an option of the On-premise model as “turnkey development”.

The customer at the stage of purchase agrees with the developer on the initial customization of the solution to his requirements. In this case, the final cost of the subscription will be higher, but the customer gets a ready-made solution right away.

Large business players choose this software delivery model to save time and resources, and in return get a working solution that can be immediately released for production.

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