The term "on-premise" refers to the use of the company's own servers and IT environment on site.
The term "On-Premise" means "on site".
This definition refers directly to the use of the server and the company's IT department.
In this usage model, the customer buys or rents software that is installed on a server which in turn is installed on its own server. Since the customer runs the software on its own hardware, it is referred to as "in-house" software.
With the On-Premise model, customers have optimal control over the data and therefore personally understand all associated risks.