When does it make sense for me to go on-premise or cloud?

If your preference is to own your own software, or if you're not sure you can maintain an Office 365 subscription for the long term, the on‑premise version may be your best option. Deep integration to third-party applications or a need for significant customization are also reasons you should go for an on-premise setup. More about the reasons to keep SharePoint on-premise in this blog.

However this means that when Microsoft upgrades its Office software you won't have the latest version, nor will it allow you to quickly scale as the business requires.