On-premises software

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On-premises software (sometimes abbreviated as "on-prem") 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 a server farm or cloud. On-premises software is sometimes referred to as “shrinkwrap” software, and off-premises software is commonly called “software as a service” ("SaaS") or “cloud computing”.

A driver for moving away from on-premises to co-location was the need to provide web servers. With the massive growth of the web around 2000, even companies with a strong background in on-premises hosting found themselves needing to also use co-located web servers in remote data centers, in order to achieve the necessary connectivity. 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.[citation needed]


There is some confusion regarding the use of premise and premises.[1][2] Some suppose that as "premises" has a plural form, "premise" must be the singular; however, this is incorrect.[3] Despite this, the incorrect usage is now commonplace among technology companies and technology news sources.[4]

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