Below is the high level description. It totally depends on you and how you want to handle.
Autonomic Event Services (AES) – AES monitors on-premise applications. AES is installed and managed on-site.
Predictive Diagnostic Cloud (PDC) – Pega PDC is a Pega-hosted Software as a Service (SaaS) application that monitors Pega Cloud applications. PDC can also be configured to monitor on-premise applications.