Essentially, the fundamental difference between cloud vs on-premise software is where it resides. On-premise software is installed locally, on your business' computers and servers, where cloud software is hosted on the vendor's server and accessed via a web browser.

Is on-premise considered cloud?

On-premise infrastructure, or private clouds, are cloud computing environments that are reserved for use by one organization. On-premise infrastructure provides the same type of elastic, virtualized services as public clouds, but also offers greater control and visibility into infrastructure.

What is meant by on-premises in cloud?

On-premise infrastructure, or private cloud, is a cloud environment that is available for use only by one client. Rather than sharing a pool of resources with multiple customers, companies have complete access to all the resources that a private cloud provides.