When software operates on servers located on a company’s premises, this is known as:

The term used to describe software that operates on servers located on a company’s premises is known as on-premises. This designation indicates that the software and the necessary infrastructure, such as servers and hardware, are physically located within the organization’s own facilities. Companies typically have direct control over these resources, allowing them to manage and maintain their systems according to their specific requirements.

In contrast, other terms like cloud computing refer to software and resources being hosted remotely on servers managed by a third party, often accessible via the internet. Off-premises indicates that the services and data management are outside the organization’s facilities. Software as a Service (SaaS) involves software being provided over the internet, where users access it via a subscription model, further indicating a lack of local control over the software infrastructure.

Thus, on-premises accurately describes an environment where businesses run their software on their own servers, providing them with more control over performance, security, and compliance compared to cloud-based alternatives.