The Insteon Hub is cloud-based, generally, it uses an app to talk to their web server. Individual components don't have any network capability, just the hub. It is, however, possible to use local software with an adapter with Insteon, though they don't give it a lot of attention anymore, because they want to compete with the trendy new companies on the block.

I use Insteon completely locally running software I wrote more or less myself on my desktop PC.