
SharePoint Online vs. On-Premise: Everything You Need to Know
Businesses that continually optimize their services as per current business standards thrive in today’s competitive business landscape. Therefore, when considering SharePoint online vs SharePoint on-premise, look for a company that remains updated with current tech and tools.
SharePoint Online, a cloud-based application, delivers a modern and scalable digital communication and collaboration platform. Alternatively, SharePoint On-Premise provides localized deployment options. This gives businesses greater control and customization capabilities. This capability often leaves organizations at a crossroads, uncertain whether to migrate to SharePoint Online or maintain their on-premise setup. The complexity of this decision can sometimes hinder the transition to the cloud.
This blog offers a comprehensive analysis of SharePoint Online versus SharePoint On-Premises to help you make an informed choice. We will explain in detail how your choice will align with your operational requirements and maximize efficiency. We will explore various factors, capabilities, and features to consider, ensuring you have all the information needed to make the best decision for your organization.
Why Microsoft SharePoint is a critical Business Tool?
Microsoft SharePoint stands out as a robust platform for businesses. It is designed for document management, team collaboration, intranet portals, process automation, business intelligence, and customization. It empowers organizations to boost productivity and streamline operations. As a result, it enhances collaboration within the business.
SharePoint Online being a cloud-based variant of SharePoint, offers the convenience of internet accessibility. This means you can access your SharePoint platform from anywhere at any time, provided you have an internet connection. Licensed per user, SharePoint Online is available as a standalone plan or as part of Microsoft 365.
The requirement of SharePoint Online can be meet with various options tailored to meet diverse needs. It integrates seamlessly with other Microsoft tools like Teams, OneDrive, and Outlook, making it a versatile and scalable solution for businesses. It helps businesses to collaborate, manage documents, and optimize workflows in a virtual environment.
SharePoint On-premises, on the other hand, is the traditional, self-hosted version of SharePoint that companies can deploy on their in-house servers. Licensing for this version follows a Server/CAL model, offering both Standard and Enterprise CALs that provide core and full capabilities respectively.
From the option, SharePoint online vs on premise, opting for the on-premises version gives you complete control over your SharePoint environment, including data storage and infrastructure management. This is an ideal choice for organizations that prefer to manage everything on-site and have specific needs for customization or compliance.
The Comparison: SharePoint Online Vs. SharePoint On-Premise
There are various differences between SharePoint Online and SharePoint On-Premises. Here are the major points of differences.
1. Infrastructure and Maintenance
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SharePoint Online
Opting for SharePoint Online eliminates the need for organizations to manage their infrastructure. Microsoft takes care of the servers and handles all maintenance, updates, and security, ensuring a hassle-free experience for users.
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SharePoint On-Premise
This deployment option requires organizations to set up and maintain their servers, hardware, and software. It demands a certain level of IT expertise and ongoing maintenance efforts to ensure the system operates smoothly. Organizations must be prepared to handle updates, security, and overall system performance to keep everything running efficiently.
2. Security and Compliance
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SharePoint Online
With SharePoint Online, Microsoft handles the security measures, updates, and compliance requirements. This ensures that the platform is always up to date with the latest trends, tech and security measures. It thus becomes easier for the platform to offer robust security features, including data encryption, threat detection, and compliance certifications such as GDPR and ISO, giving organizations peace of mind that their data is secure and compliant with industry standards.
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SharePoint On-Premise
SharePoint On-Premises gives organizations more control over their security measures, but it requires them to implement and maintain these protocols themselves. This includes managing firewalls, data encryption, access controls, and ensuring compliance with relevant standards and regulations. While this option provides greater customization and control, it also demands a higher level of IT expertise and ongoing effort to keep the environment secure.
3. Customization and Control
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SharePoint Online
SharePoint Online offers various customization options. These options include site branding and custom web parts, enabling organizations to tailor their sites to meet specific needs. However, when comparing SharePoint Online to its on-premises counterpart, there are some limitations. Organizations have less control over the underlying infrastructure, as it is managed by Microsoft.
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SharePoint On-Premise
SharePoint On-Premises provides significantly greater control and customization capabilities. Organizations can extensively tailor the platform to their specific requirements, including server configuration, custom development, and integration with other on-premises systems. This level of control allows for a highly personalized and integrated environment, meeting unique business needs and compliance requirements.
4. Collaboration Tools
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SharePoint Online
SharePoint Online includes a suite of powerful collaboration tools such as Microsoft PowerApps, Microsoft Flow, and Azure Functions. These integrated tools enhance productivity by enabling seamless automation, custom app creation, and advanced workflows within the SharePoint environment.
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SharePoint On-Premise
SharePoint On-Premises does not come with these integrated tools and applications. Organizations must make separate arrangements to incorporate additional tools and applications, often requiring more complex setups and additional resources to achieve similar functionality to what is readily available in SharePoint Online.
5. Scalability and Flexibility
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SharePoint Online
SharePoint Online offers high scalability, enabling organizations to easily adjust their storage and user requirements as their needs evolve. This flexibility allows businesses to scale up or down quickly without the need for additional infrastructure. Additionally, SharePoint Online provides the convenience of accessing content from anywhere with an internet connection, ensuring seamless remote collaboration.
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SharePoint On-Premise
The scalability of SharePoint On-Premises is largely dependent on the organization’s existing infrastructure. Scaling up typically requires procuring additional hardware and resources, which can be complex and time-consuming. Moreover, content access is generally restricted to on-premises locations or through a VPN, potentially limiting remote access and collaboration.
6. Cost
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SharePoint Online
SharePoint Online operates on a subscription-based model, with costs determined by the number of users and storage requirements. This model eliminates the need for upfront infrastructure investments. Reason being Microsoft manages the servers and maintenance. However, organizations will incur ongoing subscription fees as part of their operational expenses.
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SharePoint On-Premise
SharePoint On-Premises typically necessitates a significant upfront investment in hardware, software licenses, and infrastructure setup. Despite these initial costs, the ongoing expenses may be lower compared to a subscription model, as there are no recurring fees for server maintenance and storage managed by a third party. This option can be more cost-effective in the long run. This is especially the right option for larger organizations with the necessary IT resources to manage their own infrastructure
Advantages of SharePoint Online Vs On-Premise
Various organizations consider a migration to SharePoint Online from On-prem model because of SharePoint online benefits. Here are the reasons why businesses like SharePoint Online.
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Cost Savings:
Operating on a subscription-based model, SharePoint Online eliminates the upfront hardware and infrastructure costs associated with on-premises deployments. This helps companies to benefit from predictable monthly or annual subscription fees. Therefore, it reduces capital expenditure and shift costs to operational expenses.
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Scalability and Flexibility:
SharePoint Online allows organizations to quickly adjust storage capacity and user licenses as needed. This flexibility enables businesses to scale up or down according to their evolving requirements without the need for additional hardware or infrastructure investments.
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Automatic Updates:
As a cloud-based service, SharePoint Online manages updates, patches, and security enhancements automatically. This ensures organizations always have the latest version of SharePoint. It thus eliminates the need for manual updates and reduces the burden on IT teams to keep the system current and secure.
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Accessibility and Remote Collaboration:
With an internet connection, SharePoint Online provides easy access to content and collaboration tools from anywhere. This is particularly beneficial for organizations with distributed teams and remote workers. It also thus becomes beneficial to those requiring external collaboration. Users can access SharePoint Online via a web browser or mobile app, promoting seamless collaboration and information sharing.
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Enhanced Security and Compliance:
Microsoft invests heavily in data security measures for SharePoint Online. It offers robust security features such as data encryption, threat detection, and compliance certifications including GDPR and ISO, ensuring data protection and regulatory compliance.
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Integration with Microsoft 365 Services:
SharePoint Online integrates seamlessly with other Microsoft 365 services like Microsoft Teams, OneDrive, and the Power Platform Suite. This integration enhances productivity, streamlines workflows, and provides a unified collaboration experience across various tools.
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Focus on Core Business Functions:
By offloading the management and maintenance of infrastructure to Microsoft, organizations using SharePoint Online can free up IT resources to focus on core business functions, strategic initiatives, and driving innovation, rather than server maintenance and troubleshooting.
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Continuity and Disaster Recovery:
SharePoint Online ensures data protection and business continuity through Microsoft’s data centres, which offer built-in backup and disaster recovery capabilities. This provides redundancy and reliable backups, minimizing the risk of data loss and offering peace of mind for organizations.
How to Make Right Choice Between SharePoint Online vs. SharePoint On-Premise?
By understanding business needs and considering factors like customization, control and so on, businesses can easily decide between SharePoint online vs. SharePoint on-premise to figure out which platform to use. Here is a detailed analysis of when to consider which platform.
When to Consider SharePoint Online
SharePoint Online saves cost for the business. it also contributes to reduce business complexity. By choosing this option, organizations can avoid the time and expense associated with creating and maintaining the necessary infrastructure. Thus, SharePoint Online becomes ideal for:
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Team Collaboration:
Leverage features like team sites, document libraries, lists, and real-time co-authoring to enable seamless collaboration and communication among team members. This fosters a more connected and productive work environment.
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Document Management:
Utilize features such as version control, metadata tagging, search capabilities, and permissions management. This makes storing, finding, and collaborating on documents much easier. This ensures that important information is always accessible and organized.
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Intranet and Company-wide Communication:
SharePoint Online serves as a platform for disseminating important information, sharing updates, and engaging employees across the organization. This helps when companies wish to be in line with every employee and unified goals and outcomes.
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Business Process Automation:
Automate business processes and streamline repetitive tasks using Power Automate with SharePoint. Create custom workflows for approvals and document routing. It can also be used for notifications to improve efficiency and reduce manual effort.
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Knowledge Sharing and Content Management:
Use features like wikis, blogs, discussion boards, and content categorization to facilitate knowledge exchange and content organization. This encourages the sharing of expertise and best practices within the organization.
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Security and Compliance:
Protect your organization’s sensitive data with advanced access controls, encryption options, data loss prevention (DLP) policies, and compliance tools. These features ensure data security and help meet regulatory compliance requirements.
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Remote Work and Mobile Access:
Access documents and collaboration tools from anywhere, using any device. This flexibility is particularly beneficial for organizations with distributed teams or remote employees, enabling them to stay productive and connected regardless of location.
When to Consider SharePoint On-premise
SharePoint On-Premises is the ideal solution if your organization already has a dedicated infrastructure. Here are some scenarios where selecting this model might be appropriate:
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Data Privacy and Security:
For organizations with strict regulatory or compliance requirements, keeping data within their infrastructure is crucial. SharePoint On-Premises allows for the implementation of specific security measures tailored to the organization’s needs, ensuring compliance with industry standards and providing an added layer of control over sensitive information.
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Customization and Integration:
If your business processes are complex or require extensive customizations and deep integration with other systems or legacy applications, SharePoint On-Premises is the best fit. This model gives companies complete control over the server environment, allowing for extensive customization to meet unique business requirements.
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Bandwidth and Network Connectivity:
For organizations where reliable internet access is a challenge, such as remote or low-bandwidth areas, SharePoint On-Premises allows users to access and collaborate on documents and content locally, without depending on internet connectivity. This ensures uninterrupted access and SharePoint collaboration, even in areas with limited connectivity.
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Complete Administrative Control:
SharePoint On-Premises provides full control over the infrastructure, including hardware, server configurations, and maintenance schedules. This level of control enables IT professionals to manage and optimize the SharePoint environment according to specific organizational needs, ensuring better performance and efficient resource utilization.
How IDS Logic can Help with SharePoint Development Services?
When deciding between SharePoint development services and SharePoint On-premise, go with an agency that can be trusted with the services.
Start with deciding the services. Once you have selected the SharePoint platform that best suits your organization’s needs, it’s essential to partner with a reliable SharePoint development expert to facilitate a seamless migration process.
With over decades of experience and specialization in offering various development services, our professionals can deliver top-notch SharePoint Development Services. Our team ensures a thorough business understanding and that is how we are capable of providing exceptional services to projects of any level.