On-premise ERP solutions are installed locally on hardware and servers of enterprises and then managed by their own IT staff. Enterprises need to take care of licensing cost, infrastructure set up and maintenance cost of applications.
Now a days it is said that, pure On Premises Model is going to be legacy soon. But new developments are taking place that will link on premises infrastructures with cloud and make them advance in aspects of maintenance and accessibility.
Data Security: As your data is sitting in your own premises, its security is 100% matter of your control
Control: As everything is with you, everything is in your control
Flexibility: It allows all flexibilities related to configurations
High Cost: Infrastructure cost, licensing cost, application maintenance cost etc has to be bared by company
Requirement of capable in house resources to handle the application
Accessibility issues: As application is on premises, access from remote office may be the concern here
More time for deployment