"SharePoint cloud vs on premise: Find the best fit for your business "

Choosing Between SharePoint Online and SharePoint On-Premise

SharePoint is a modern business tool primarily used for electronic document management, content management, messaging, and managing business statistics. By providing a centralized and secure platform, SharePoint increases efficiency, promotes collaboration, and streamlines data management.

When it comes to the SharePoint platform, businesses have two options: SharePoint Online and SharePoint On-Premise. The key goal is to streamline daily business operations and enhance efficiency. In this post, we’ll compare SharePoint Online and SharePoint On-Premise to help you select the best option for your needs.

Comparison Between SharePoint Online and SharePoint On-Premise

Both SharePoint Online and SharePoint On-Premise are SaaS-based file management tools designed to facilitate employee collaboration.

1. Easy Integration

Microsoft has recently made significant updates to the SharePoint document library, primarily aimed at enhancing the experience for OneDrive users. These changes do not alter the look and feel of the document libraries. Regardless of whether you use the On-Premise or Online version, SharePoint promotes collaboration and simplifies processes for employees.

2. Pricing

When comparing SharePoint Online and SharePoint On-Premise, the pricing structure is a critical factor. SharePoint On-Premise requires multiple servers, each necessitating a proper license. In contrast, SharePoint Online operates differently; the deployment of SharePoint servers does not impact the overall implementation costs, as it is managed through a flat-rate license subscription.

The licensing model for SharePoint On-Premise can be advantageous since users do not need to worry about the number of SharePoint servers or licenses utilized. Conversely, Office 365 reduces overall administrative costs and eliminates the need for employees to consider switching to the latest SharePoint versions.

3. SharePoint Licensing

The licensing models for SharePoint Online and SharePoint On-Premise differ. However, both include Office 365 subscriptions, allowing users to access and manage their office documents online. Small and medium-sized businesses (SMEs) also have the authority to view and edit these documents.

In SharePoint On-Premise, an Office Web Apps license is not required. However, if you wish to edit documents online via web applications, a separate license is needed.

4. Data Storage

When deciding between SharePoint Online and SharePoint On-Premise, consider the volume of data you need to store. SharePoint On-Premise allows for unlimited data storage, provided you invest in the appropriate hardware (which incurs additional costs).

In contrast, SharePoint Online subscriptions do not offer unlimited data storage. According to Microsoft’s data storage guidelines, each user receives 10 GB for free, along with an additional 500 MB per subscriber.

Conclusion

In this comparison of SharePoint Online and SharePoint On-Premise, we have covered essential factors, including pricing, licensing, and data storage. Your decision should ultimately depend on your specific business needs. If you're still uncertain about which option to choose, consider seeking assistance from SharePoint development services.

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