An on-premise system is an application or software that is installed and run on the company's servers in its own physical location. Data is typically accessed through the company's internal network, though remote access may be configured via solutions such as company VPNs. Although on-premise systems offer greater control and customization, it often involves significant upfront investment and ongoing maintenance responsibilities. They are most commonly-used for industries with strict regulatory and compliance requirements.
In contrast to on-premise systems, cloud-based systems are applications or services accessed via the Internet. Data is stored on remote servers rather than local hardware, which enables on-demand accessibility, greater flexibility for remote work, and cost-efficiency by eliminating the need for organizations to purchase and maintain their own physical hardware and infrastructure. Common examples of cloud-based systems include Google Drive, iCloud, and Dropbox.
In terms of how a system is typically accessed, on-premise systems are usually accessed through internal networks, while desktop-based systems are accessed through installed applications on devices. One example of a desktop-based system is Microsoft Access.
