SharePoint is a powerful collaboration and document management tool, used by over 80% of all Fortune 500 companies. But it is not only the big companies that are tapping into its potential. Across the world, businesses of all sizes and from various industry verticals are using SharePoint to create intranet or build document libraries. Microsoft SharePoint can be deployed in multiple ways. On one hand, you have Microsoft SharePoint Online, which allows you to build a robust and accessible collaborative environment on the cloud. On the other hand, you have SharePoint On-Premises or Server-based solutions, where all data and systems are hosted on your local server.
When you are thinking about setting up a SharePoint environment for your business, one of the most crucial decisions you need to make is to decide whether to go for SharePoint Online or SharePoint server. Here, we are going to compare SharePoint Online vs SharePoint On Premise, look at the pros and the cons of each and try to find out which might be ideal for you.
What is SharePoint Online?
Let us start with SharePoint Online. Since its launch, it has become one of the most popular platforms for managing and collaborating on documents online.
So, what exactly is Microsoft SharePoint Online? It is an online, cloud-based platform hosted by Microsoft that offers businesses an array of tools for collaboration, document management, content sharing, and communication.
SharePoint Online is a constituent of the Microsoft 365 suite of applications. Which is why you can use SharePoint if you have a Microsoft 365 E3 or E5 license.
The platform is designed to help organizations create secure, centralized locations where teams can work together, share resources and access information from anywhere, anytime.
Key Features of SharePoint Online
Managed by Microsoft : The platform, and its critical aspects like security, updates, integrations are managed by Microsoft. This gives it two big advantages. First, you do not have to focus your resources on managing security and new features. Second, you get to utilize all the advanced features that Microsoft releases regularly.
Seamless Integration with the Microsoft Ecosystem : As it is a part of the Microsoft ecosystem, SharePoint integrates seamlessly with widely used applications like Teams, Outlook, Power BI, Dynamics 365, and others. So, you do not have to create complex APIs or rely on third-party custom connectors. This reduces security risks and the complexity of integration.
Ease of Access : Since it is based on the cloud, SharePoint Online can be accessed from anywhere, anytime. All you need is a stable internet connection, and you can access all the information stored on the system.
What is SharePoint On-Premises?
SharePoint On-Premises or SharePoint Server is the ‘server’ based version of SharePoint. In other words, the only significant difference for SharePoint Online vs On-Premises is the location where the system is hosted. Other than that, both share most of the key features.
To access SharePoint sites or document libraries on the server version, you need to have your own server infrastructure, where all the data will be hosted. You can have hybrid deployment, where you can combine SharePoint Server and SharePoint Online.
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Key Features of SharePoint On-Premises
Better Control : When it comes to SharePoint online vs on premise, you get better control when you choose the On-Premises version. You can choose which updates and security patches to apply to your SharePoint environment.
Higher Level of Customization : You will be able to customize various aspects of the platform, including the overall UI/UX of the system and combination of features that you can include in your SP environment.
Potential Improvements in Security : Since all the data will be hosted on your system, it might give your sensitive documents better protection from cybersecurity threats.
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Now that we have an overall view of SharePoint Online and SharePoint On-Premises, let us now compare SharePoint Online vs SharePoint On-Premises. We will be looking at the pros and cons of both the platforms and see which one you should choose.
So, let us begin by taking a closer look at the pros and cons of SharePoint Online
SharePoint Online vs On-Premises: Pros of SharePoint Online
Let us start by understanding some of the biggest pros of SharePoint online. Here are some of them:
Seamless Accessibility : SharePoint Online is completely hosted on the cloud, team members can work from anytime, anywhere, increasing overall productivity.
Reduced IT Maintenance : Microsoft helps you to manage updates, backups, and infrastructure. This reduces the stress of having your own IT infrastructure, as well as the need to have your own maintenance team.
Cost-Effective : As there are no-upfront costs of investing in additional infrastructure for SharePoint Online, the setup costs are significantly lower than having a server-based infrastructure. On top of that, the subscription-based pricing model of SharePoint Online makes the costs more manageable, even for businesses on a tight budget.
Scalability : If you are a rapidly growing business, then you need a document management system that grows with you. Scalability is one of the biggest features of SharePoint Online. It can freely adapt to your dynamic needs so that you always have a system that delivers consistent performance.
Seamless Integration with Microsoft 365 : SharePoint Online easily integrates with common Microsoft 365 applications like Teams, OneDrive, Power Automate, Power BI, Power Apps as well as Dynamics 365. This gives a further boost to its capabilities.
Cons of SharePoint Online
Unfortunately, certain aspects of SharePoint Online might feel to be a disadvantage in some scenarios. Here are some of them:
Limited Customization : Although most of the elements of the SharePoint Online environment are customizable, there are some aspects which cannot be customized. This somewhat limits the control you have over the environment.
Needs Access to the Internet : Since the system is hosted on the cloud, you will need to be constantly connected to the internet to access your files. Now, this should be fine in most cases. But in case of network outages, you would not be able to access the files.
Data Sovereignty Concerns : In certain cases, it might be preferable, or even necessary, to have sensitive data to be hosted on-premises, on your own servers. For example, certain data privacy standards require you to save data on local servers. So, if you are subject to such standards, it might not be feasible to opt for SharePoint Online.
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SharePoint Online vs SharePoint On Premise : The Pros of SP Server
Let us turn our attention to SharePoint On-Premises, also known as SP Server. There are a few advantages that it can boast of as well. Here are the key ones:
Full Control and Customization : With SharePoint Server, you have more power to customize your platform, to meet your specific needs. Apart from that, you also get complete control over how your data is stored, managed, and accessed on the platform.
Enhanced Security : Since the data is hosted on your server, you can apply your own security protocols and have full oversight over the infrastructure. This will surely give you a heightened sense of security over your sensitive data.
No Internet Dependency : SharePoint On-Premises can be accessed over your local network. This means that you will not need an internet connection to access the files, ensuring complete accessibility without any dependencies.
The Cons of SharePoint On-Premises
Just like SharePoint Online, you have certain drawbacks of SharePoint On-Premises as well. When you are comparing SharePoint Online vs SharePoint On Premise, it is important to know about the cons of SP Server as well. Here are some of the cons of the platform:
Higher Upfront Costs : To set up and maintain a SharePoint On Premises environment, you need dedicated servers, hardware as well as IT teams. This makes it more expensive than SharePoint Online, both in the short and long term.
Ongoing Maintenance : Since you are independently responsible for the maintenance of the platform, you will need to make the effort to ensure regular software updates, security patches and data backups. Needless to say, this will take considerable planning and resources.
Limited Accessibility : If you have remote employees, or teams working from various locations across the globe, then you might not get the same flexibility and accessibility from SharePoint server, that you will get from SharePoint Online.
SharePoint Online vs On-Premises : Which One Should You Choose
So, it all boils down to one question : which of the platforms should you choose? Well, there is one size that fits all. You need to consider a few factors that you need to look at before you make that decision.
The Needs and Size of Your Business : If you are a small or medium-sized business, then you can benefit from cost savings that SharePoint brings to the table.
On the other hand, if you run a large-scale operation, or have specific compliance or customization needs, then SharePoint server might be ideal for your business.
Your Industry-Specific Requirements : If you operate in an industry that has strict data security and governance standards, then SharePoint On-Premises might be an option that you might want to consider.
If your industry requires extensive field work, then you need an accessible DMS. For such scenarios, SharePoint Online fits the bit perfectly.
So, this was the showdown for SharePoint Online vs SharePoint On Premise. We have talked about the pros and cons of both the platforms, which will give you some clarity on which one you should choose. Remember, your final decision should depend on factors like business size, IT capabilities, budget, and your specific compliance requirements.
At Evolvous, we offer document management solutions based on both SharePoint Online and SharePoint Server. We guide businesses like you in choosing the right SharePoint deployment based on your needs.
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