What does 'on-premises' mean? [closed]

Here is the example sentence.

Windows Azure Caching was developed from an on-premises Caching solution that shipped with Microsoft AppFabric 1.1 for Windows Server.

What does 'on-premises' mean?

Solution 1:

On-Premise

Traditional method of installing and customizing software on the customer’s own computers that reside inside their own data center.

On-premises software

(often abbreviated as on-prem software, and also called “on-premises” software) is installed and run on computers on the premises (in the building) of the person or organisation using the software, rather than at a remote facility, such as at a server farm or cloud somewhere on the internet. On-premises software is sometimes referred to as “shrinkwrap” software, and off-premises software is commonly called “software as a service” or “computing in the cloud”.

Related: On-premises/on-prem, off-premises applications, what are they?