Can we still use an on premise environment that currently works with Local data storage for File listeners?
Answer: Yes, there is nothing stopping you from configuring local data storage. Pega just acknowledges that cloud environments would require a repository.
If yes will it still work when we will move to containerisation deployments ?
Yes, moving to a containered deployed (like Kubernetes) should not change the local share point.
There is documentation below that outlines how to setup and configure on premise file systems. This could also be applied to listeners. There is a cavet in there stating that, “You should only use local file system repositories with a shared or network storage, or for development-time experimentation.” This is best practices and you should try to adhere to this recommendation.
To expand with some additional information, the following link describes persistent volumes in kubernetes that would enable all nodes to access a standard mount point and behave like local storage. This would require a shared network storage in the volume configuration.