Hi Jo, thanks for asking.
BPMonline provides two options of deployment: On-Demand ( the solution is hosted and maintained in our data center); On-Site (the solution is hosted on your premises and you are responsible for maintenance). In case of On-Demand option we have a pricing policy of annual subscription, while for On-Site we charge onetime for licenses and later on charge 15% for provision of upgrade services.
Jo, it simply means your data in your own hands. Some organisations by law cannot store their sensitive data in the "cloud", for example banks, hospitals etc. So bpm'online gives customers the choice to self-host the database. Sometimes it can be a cheaper option too depending on the size of your company.
Val and Suman, super clear answers, thanks guys. You are a great team.