"On-premises" refers to software or hardware that is installed and runs on a company's own physical servers and infrastructure, rather than being hosted in the cloud. This means that the organization is responsible for maintaining, updating, and securing the systems, which can provide greater control over data and operations. Many businesses choose on-premises solutions for sensitive data management, as it allows them to keep information within their own facilities. However, this approach often requires a larger upfront investment in hardware, software licenses, and ongoing maintenance compared to cloud-based alternatives.