On-premise

As opposed to the cloud, it is installed and operated directly on your own server. Security-critical organizations choose to adopt AI.

On-premise is a method of installing and operating software and data on servers and computer rooms owned directly by the organization rather than on an external cloud. It's like building your own building instead of renting someone else's building, so you have clear control, but you have to handle all the construction and maintenance yourself.

Even now that the cloud has become mainstream, on-premise is preferred in fields where data must not go out, such as finance, defense, and medicine. In particular, when introducing AI, companies that cannot send internal confidential documents to external AI services are using the open-weight model by installing it on their own servers.

However, it may be a misunderstanding that on-premise is unconditionally more secure. The level of security ultimately depends on operational capabilities, so poorly managed in-house servers may be more vulnerable than large clouds.

✅ Why it matters

• Data never leaves the organization, which is beneficial for confidentiality and regulatory compliance
• You can freely configure and control the system to suit yits needs
• If you use a lot, it can be cheaper than cloud fees in the long run

⚠️ Limits and debates

• Initial construction costs and the burden of specialized operating personnel are high
• Difficult to expand flexibly according to changes in demand
• Security and response to failures must be handled entirely within one's own capabilities