You store and access data, programs, and applications from your computer’s hard drive or a server somewhere in the building (=on-premise). Your IT actively supports the software. Your IT is responsible for implementation, operation, and uptime, and the data is on your hardware.
There are benefits, but this comes at a cost:
Most security breaches happen as a result of the actions of employees. A security breach can take a long time for you as a company to discover. Take care if you deploy on-premise software on your own hardware. You are in charge of ensuring physical access protection. This reduces the risk of malicious actions of employees.
You are in charge of keeping your systems secure. Especially for small companies, ask yourself: Can I provide the necessary security measures? If not, give cloud computing a second thought.
Investment in hardware
On-premise systems are more expensive to implement. You will need to buy hardware, servers, and software.
Investment in running costs
On-premise systems have higher running costs. You will need to pay your experienced IT staff to keep the system secure and for maintenance and upgrade.