On-premises software (sometimes abbreviated as "on-prem" software) is installed and runs on computers on the premises (in the building) of the person or organization 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”. Within the context of cloud computing, the term "on-premise" is incorrect grammatical English,[1] yet has become commonplace particularly with some of the cloud software vendors.[2]
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.
