The On-Premise hosting (local) hosting requires you to download the software and install it, either on your computer or on your server. With this type of implementation you are responsible for everything related to the running of the software. You must purchase the network infrastructure, power, servers, operating system, etc. You also need to maintain all necessary infrastructures to keep it running, safe, and up to date. The On-Premise hosting gives you full control and autonomy of your installation. You do need to have fairly advanced technical knowledge in order to implement and maintain this kind of hosting.