A type of software delivery model[1] that is installed and operated from a customer’s in-house server and computing infrastructure[2]. It utilizes an organization’s native computing resources and requires only a licensed or purchased copy of software from an independent software vendor. In the case of on-premise software, the purchaser capitalizes the expenses of the software.
The approach taken to “deliver” enterprise software. It is usually used when referring to a software application. There are three primary delivery models for enterprise software: (1) licensed on-premise model in which a customer purchases software and owns it; (2) SaaS or “Software as a Service” model in which the customer “rents” the software, and the supplier runs and updates the software, providing the software as a service offering rather than as a product; and, (3) hosted model in which a customer purchases or leases the software, and a third party runs the software for that customer. Many customers use a “hybrid” approach, a combination of on-premise solutions and cloud or SaaS.
The generic term to include all application software, operating systems, network communications and database management systems with an organization.
