The Microsoft Dynamics CRM On-Premise Implementation allows an organisation with a dedicated Windows Application and Database Server on the Company’s Network and Active Directory Domain to host CRM internally. The Infrastructure requirements can vary depending on the complexity and scale of the solution. A CRM Consultant should be certified and experienced in implementing the on-premise CRM infrastructures as issues could affect you later if it is poortly configured or maintained.
One of the main reasons for an On Premise CRM Implementation is when a business has invested in maintaining its own infrastructure which may have integrations with back-office systems and to maintain compliance with customer data confidentiality. An On-premise implementation can give an organisation more jurisdiction and control over CRM if there is a requirement it.
The CRM on-premises deployment is licensed according to the Server/Client Access License (CAL) model which is different to the Saas CRM Online Licence model and pricing.
You can ready more about how CRM On premise Compares to CRM Online in my Dynamics CRM Blog