SharePoint on Premise vs. Online – Which is Better?
8 MIN READMicrosoft SharePoint is a web-based platform that assists in streamlining document management, collaboration, and intranet activities within the workspace. With SharePoint, users can store, share, organize, and control access from any device.
This is an efficient platform that helps companies to embrace remote and hybrid work cultures. While planning to set up SharePoint for your organization, you would need to choose between SharePoint On-Premise and SharePoint Online.
To make an informed decision on which is better between SharePoint On-Premise vs. Online, read this blog till the end.
SharePoint On-Premise is an important variant of SharePoint that organizations install for their local services.
With SharePoint On-Premise, you can gain full control of your environment and reap essential SharePoint benefits. This means, that between SharePoint On-Premise vs. Online, the former allows you to customize the web-based platform and add new features.
SharePoint On-Premise requires you to conduct an initial setup and ongoing maintenance. The key features of SharePoint On-Premise are workflow automation, enterprise search, document management and data customization, and convenient integration with other Microsoft Office products.
Additionally, SharePoint On-Premise also allows organizations to create internal websites, manage documents, and automate business processes. SharePoint On-Premise also supports extensive customization through web parts, apps, and other tailored solutions. This helps organizations meet specific business needs.
Furthermore, SharePoint On-Premise also places special emphasis on data confidentiality. For this, the platform places special focus on strict compliance with regulatory requirements. This makes SharePoint a must-have for industries with stringent data and high-security standards.
Overview of SharePoint Online
Like SharePoint On-Premise, SharePoint Online is a cloud-based service platform under Microsoft 365 ecosystem. Users have to pay a monthly subscription to utilize SharePoint Online benefits.
One of the most significant perks of using SharePoint Online is that Microsoft looks after all its updates and security patches. This implies, you do not have to carry the burden of keeping the platform up-to-date and can focus on your high-priority tasks.
Another feather on the hat of advantages that SharePoint Online boasts is that you can access your information from SharePoint Online from any location. Thus, companies that are embracing remote or hybrid work culture can opt for SharePoint Online to ensure negligible to no friction in workflow processes.
Now that you have an idea of what SharePoint online is, let’s take you through the factors that help differentiate between SharePoint On-Premise vs. Online.
Key Differences between SharePoint On-Premise and SharePoint Online
For the right SharePoint adaption for your workplace, you must possess detailed knowledge of factors that differentiate both SharePoint variants.
On this note, the table below displays the important points of differences between SharePoint On-Premise vs. Online.
| SharePoint On-Premise | SharePoint Online |
|---|---|
| This SharePoint intranet variant is installed and maintained on your organization’s servers. | Microsoft Cloud hosts SharePoint Online as a cloud platform under Microsoft 365. |
| The organization holds full control over the server configuration, customization, and third-party integration. | Its SharePoint features have limited options for customization. |
| The accessibility of SharePoint On-Premise is available only within the organization’s network. For remote access, users require an additional configuration. | SharePoint Online can be easily accessible from anywhere with an internet connection. Thus, it is best for remote work jobs. |
| The cost to install SharePoint On-Premise is quite high as it requires investments for hardware setup, licenses, and maintenance. | The subscription-based pricing model under SharePoint Online is comparatively lower even with upfront expense |
| Between SharePoint On-Premise vs. Online, the former requires manual updates and maintenance which the IT team of your organization shall handle. | Microsoft automatically updates and conducts maintenance activities for SharePoint Online. |
| SharePoint On-Premise ensures full control over security and compliance measures with internal policies. | Microsoft hosts strong security features to avoid any form of data breach and compliance with various industry standards within SharePoint Online. |
| With SharePoint On-Premise, it is quite easy to comply with certain regulatory standards by monitoring data locations and handling | SharePoint meets several global compliance standards that might have limitations on data and residency control. |
| Organizations must look into implementing backup and disaster recovery solutions. | Microsoft manages SharePoint Online’s built-in backup and recovery features. |
| The scalability feature of SharePoint On-Premise is limited to the organization’s hardware capabilities and resources. | SharePoint Online is highly scalable and offers flexible storage capacity which Microsoft handles. |
| SharePoint On Premise conveniently integrates with on-premise systems and applications. | SharePoint Online smoothly integrates with every Microsoft 365 platform to ensure a seamless workflow. |
Pros and Cons of SharePoint Online and On-Premise and Online
Besides the differences, it is also important to know the pros and cons of SharePoint On-Premise vs. Online to make an informed decision.
The points below will provide a clear idea of benefits and drawbacks of SharePoint On-Premise and SharePoint Online.
Pros of SharePoint On-Premise
- Highly customization that allows companies to tailor the platform as per their specific needs.
- The platform supports a large and active community of users and developers
- SharePoint On-Premise is flexible and can be conveniently used for various purposes like document management
- To ensure security of data, SharePoint On-Premise uses a variety of features like data encryption and user authentication.
- SharePoint On-Premise is also scalable as it can be used in organizations of different sizes.
Cons of SharePoint On-Premise
- SharePoint On-Premise is limited to Microsoft Windows Server operating systems.
- It is complex to set up and operate, mainly for larger organization
- SharePoint On-Premise is expensive to purchase and maintain
Pros of SharePoint Online
- It is a central repository to store and manage documents, images, and other files.
- Offers diverse customization options that will help organizations personalize their experience.
- Another SharePoint Online benefit is that it easily integrates with tools within Microsoft Office. This makes it easier for users to work, edit, and share documents easily while working remotely.
- It acts as a cloud-based platform with which users can create and manage websites and other applications
- With SharePoint Online, users can share information and collaborate with others via blogs, forums, and document libraries.
Cons of SharePoint Online
- To use SharePoint Online, you must subscribe to Microsoft 365. Affording this subscription can be tough for some users.
- The default user interface of SharePoint Online might not seem appealing to some users. They can also find it tough to navigate through the interface initially.
Factors to Consider When Choosing Between On-Premise and Online
If you are still feeling confused regarding what to choose between SharePoint On-Premise vs. Online, we got you covered!
The points below will take you through some factors that you must keep in mind while choosing the right SharePoint platform for your workspace.
Cost
While choosing the right SharePoint application development services, it is essential to keep in mind how much expense you can incur.
SharePoint On-Premise requires a large amount of initial investment for hardware setup, software licenses, and maintenance. Thus, purchasing and installing can be a costly affair. So, if you own a fairly new company with very little budget, this is an important point to consider.
SharePoint Online, on the other hand, does not include hardware setup or license charges. To access this, you must purchase a Microsoft 365 subscription on a monthly or annual basis. So, SharePoint Online offers a predictable expense while reducing any upfront expenses.
Maintenance and Updates
With purchase expenses, you must also keep in mind the maintenance and update expenses that you must bear for SharePoint platform.
Between SharePoint On-Premise vs. Online, the former requires manual maintenance. Thus, this procedure is quite costly as it demands more IT resources and planning.
On the contrary, SharePoint Online automatically updates itself with Microsoft so that you can easily use the latest feature updates without spending an extra penny.
Control and Customization
It is also important for users to keep an eye on the customization and control features that might increase their expenses. For instance, SharePoint On-Premise offers diverse customization options, server configurations, and third-party integrations.
Whereas, SharePoint Online offers limited customization options through SharePoint Framework. However, users can reap SharePoint Online benefits from continuous improvements and new features with less additional effort.
Accessibility
Along with the above features, you must also pay attention to the accessibility of SharePoint On-Premise vs. Online.
On this note, users can primarily access SharePoint On-Premise when within the organization network. For remote access, they have to opt for other configurations.
While with SharePoint Online, users can access it from anywhere as a cloud-based platform.
Sum Up
To conclude, after careful consideration of the above factors, you will be able to make an informed decision. This will help you decide which is better for your organization SharePoint On-Premise vs. Online.
Frequently Asked Questions
Your organization requires SharePoint On-Premise when there is high demand for customization requirements, more storage space, compliance needs, and intranet requirements for your business network only.
You can opt for SharePoint Online if you are looking for a centralized management system, customizable platform, and higher data protection standards for your organization, and easier documentation and collaboration for your organization.
SharePoint Hybrid merges the productivity potential of SharePoint Online with that of SharePoint On-Premise server. This ensures trusted communication in the workplace while integrating functionality between features such as Search, Follow, and user profiles.