What Do the Terms "On-Premises" and "Cloud" Mean, Anyway? In this article, we'll provide an overview of these two offerings to help you determine which is the right option for your organisation. In general, "on-premises" refers to software purchased on a per-license basis and installed on individual computers. It's the traditional approach to software: You buy a license and you get a disc to install the software (or, more likely, you get directed to a place to download the software). You install the software according to the license terms - in the case of Office, you have to purchase a license for each computer you want to install the software on. Traditional Microsoft Office products, like Office 2021, fall under the on-premises umbrella. The cloud or subscription version of a product refers to software as a service (SaaS), which is essentially software licenses that you purchase and use on a subscription basis.
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