On-premises installations refer to software or hardware systems that are set up and run on a company's own physical servers and infrastructure. This means that the organization is responsible for managing, maintaining, and securing the systems within their own facilities. These installations often require significant upfront investment in equipment and resources, but they can offer greater control over data and customization options. Companies may choose on-premises solutions for reasons such as compliance with regulations or specific operational needs that cloud-based alternatives may not fully address.