On-premises service under the SaaS model means the software follows a subscription-based licensing system like traditional SaaS but is hosted on the client’s own servers instead of the vendor’s cloud. In this setup, the organization installs and operates the software within its own infrastructure while still receiving regular updates, technical support, and maintenance from the vendor. This approach combines the flexibility of SaaS with the control and security of on-premises deployment. It is often preferred by organizations that require strict data privacy, regulatory compliance, or integration with existing internal systems while benefiting from a subscription-based payment model.