What's the difference between on-premises and cloud licenses?

On-Premises

• "On-premises" refers to the traditional method of paying for software.
• You pay for a license once and then download the software to your device.
• You can then continue to use the software for as long as you abide by the license agreement.

 Cloud

• "Cloud" refers to subscription-based Microsoft offers.
• These are renewed on a monthly or yearly basis, and you may continue using them for as long as you subscribe.