On Premise: what it is, how it works and why it is still essential for many companies

In the world of information technology, the term "on-premise" is still widely used and often misunderstood. With the growing popularity of the cloud, many companies are wondering about the role of the on-premise data center and whether this architecture still makes sense today.

In this article, we'll clarify the meaning of "on-premise," how it differs from other cloud solutions, and why major companies like AWS and Azure also support hybrid and on-premise environments.

On Premise: What is it and what does it mean?

The term "on-premise" literally means "on the company's premises." In other words, on-premise is an IT infrastructure model in which servers, systems, and data are physically maintained at the organization's location whether in an on-premise data center, technical room, or dedicated structure.

Unlike cloud computing, where resources are accessed remotely, in the on-premise model, the company has full control over the management, security, and maintenance of its servers.

Why do many companies still opt for the On Premise model?

Despite the strong adoption of the cloud in recent years, on-premises servers remain the ideal choice in many scenarios. Here are some reasons:

Security and compliance: Companies with high data protection requirements, such as financial or healthcare institutions, often need to maintain their data locally.
Low latency: Applications that demand high performance and fast response times benefit from an on-premises infrastructure.
Full infrastructure control: With your own servers, you can customize configurations, ensure availability, and control operating costs.

On Premise vs Cloud: What is the best option?

There's no single answer. The ideal model depends on the company's goals and needs. Here's a comparison:

Feature	On Premise	Cloud
Control	Total	partial
Initial cost	Auto (hardware purchase)	Low (on-demand model)
Maintenance	Company responsibility	Provider's responsibility
scalability	Limited by local capacity	High and immediate

The good news is that it is now possible to combine the best of both worlds with hybrid solutions.

On Premise on AWS and Azure

Even cloud-native companies, such as AWS (Amazon Web Services) and Microsoft Azure, now offer solutions for on-premise environments.

AWS Outposts: Allows you to run AWS services locally, integrating with the cloud environment.
Azure Stack: An Azure extension that brings cloud resources into the company's data center.

These solutions reinforce that on-premises isn't outdated; it has evolved and is now part of modern hybrid architectures.

When to consider an On Premise structure?

RISC recommends evaluating the on-premises model if your company:

Requires complete control over data and security
Has legacy applications that have not migrated to the cloud
Operates in locations with connectivity limitations
Seeks a hybrid environment with cloud integrations

With extensive experience in IT infrastructure, we help our clients design robust and secure solutions, whether on-premises data centers, public clouds, or hybrid clouds.

The on-premise model remains a strong strategic option for many organizations. More than just an outdated model, it's an essential part of modern, integrated solutions.

If you're looking for performance, security, and customization, on-premise may be exactly what your company needs. Contact RISC and learn how to optimize your infrastructure.