Here are some key points about on-premises OCR:

1. Local Processing: On-premises OCR software is installed and operates on the organization’s own servers or computers. This means that sensitive or confidential data doesn’t leave the organization’s premises, which can be a critical requirement for companies with strict data security and privacy regulations.
2. Data Privacy and Security: Organizations that deal with highly sensitive information, such as medical records, legal documents, or financial data, often prefer on-premises OCR to maintain better control over their data and ensure compliance with privacy regulations.
3. Network Independence: On-premises OCR doesn’t rely on an internet connection for processing, making it suitable for environments with limited or unreliable internet connectivity.
4. Customization: On-premises OCR solutions can often be customized to meet specific business needs and integrated into existing workflows and systems.
5. Cost Considerations: While on-premises OCR provides greater control and security, it typically requires more substantial upfront investments in hardware, software, and IT infrastructure, compared to cloud-based OCR services. Additionally, organizations are responsible for maintenance, updates, and support. However, many cloud solutions make you to sign contracts charging you annually. Because of that accumulated costs of cloud solutions are often more expensive than it seem. On-premise Sunshine solutions are offered for onetime fixed payment, thou.  Here is a study on Total Cost of Ownership for OCR solutions exploring the costs.
6. Scalability: Scalability with on-premises OCR may require additional investment in hardware and software licenses as the volume of OCR processing increases.

In contrast, cloud-based OCR services rely on external servers and infrastructure to process OCR tasks, offering scalability and reduced upfront costs, but they may raise concerns about data privacy and security, especially for organizations dealing with sensitive data. However, remember that cloud is just someones’ server that you do not have any control of.

The choice between on-premises and cloud-based OCR depends on an organization’s specific needs, regulatory requirements, and available resources. Some organizations may opt for a hybrid approach, where critical or sensitive data is processed on-premises, while non-sensitive data is processed in the cloud for efficiency and scalability.