On-Prem Mule Runtime instances/servers can be registered with the Anypoint Runtime Manager (ARM) and managed from there. Servers use Runtime agents to communicate with ARM. This approach of having self-provisioned Mule Runtime Servers connected to Anypoint Platform using Anypoint Runtime Manager Agent is called Hybrid implementation.
One advantage of having On-Prem or Hybrid implementation over Cloudhub is that multiple applications can be connected using Mule Domain Project allowing them to share resources and connector versions which is not possible on Cloudhub.