Source:: The Software Architecture Handbook (freecodecamp.org)
In this case, you own the hardware where the application is running. This used to be the most traditional way of hosting applications.
You have total control over the hardware.
- It requires space, time, and money.
- It is not easy to horizontally scale up or down.
- Companies have to dedicate lots of resources to a task not directly related to their goals.
It only makes sense when dealing with very delicate or private information.