Team Foundation Server (TFS) is a Microsoft product that provides version control, issue tracking, and project management capabilities for software development teams. TFS can be purchased in two ways: on-premises or in the cloud.
On-premises TFS is installed on a server in your own data center. This gives you complete control over the server and its data, but it also requires you to manage the server yourself. Cloud TFS is hosted by Microsoft, so you don’t have to worry about managing the server or its data. However, you will need to pay a monthly subscription fee to use Cloud TFS.