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SharePoint Online vs. SharePoint On-Premises | What Should I Choose?

SharePoint Document Management
In: Business

SharePoint is a Windows server-based collaborative platform. It’s used to store, share, and manage company data and information across multiple devices. Microsoft SharePoint implementation helps you by simplifying your business’s operations and allows your employees and staff to access all necessary applications in one location. SharePoint is a centralized and secure platform that enables workgroups to collaborate, manage data, and boost productivity. 

According to Microsoft, SharePoint is used for intranets, team sites, and content management by more than 200,000 organizations and 190 million people. For this collaborative process, SharePoint provides two options: SharePoint On-premises and SharePoint Online. Organizations that use SharePoint are frequently stuck between two options: moving to SharePoint Online or staying with SharePoint on-premises. It’s not easy to choose between SharePoint on-premises and SharePoint Online. When deciding between SharePoint Online and SharePoint on-premises, there are several factors to consider. SharePoint on-premises and SharePoint online each have their own set of advantages and disadvantages. As a result, we’ll go over the advantages and disadvantages of each platform separately in this blog.

Microsoft SharePoint

SharePoint is a collaboration tool that is primarily used for managing content and electronic documents. The use of SharePoint can allow employees or teams to collaborate more effectively. It also works in tandem with other Microsoft products to provide a complete productivity-enhancing environment.

SharePoint On-premises

The SharePoint on-premises server arrangement will take up more space and will be maintained by the internal IT team. As a result, more people and equipment would be necessary. The users will have full access to the platform, it allows for complete customization of each platform feature on SharePoint on-premises.

The business is expected to make a backup of its data on its own. Patches and updates will be handled on a regular basis by the organization’s internal IT team. Since it is deployed and handled alone by the business.

The platform’s speed is determined by the local infrastructure, which is built and maintained by the organization. The data’s security is entirely dependent on the internal IT team’s skills.

SharePoint on-premises is a better choice for the below requirements:

  • Have a dedicated infrastructure for SharePoint.
  • Have a need for data on-premises because of compliance requirements.
  • Don’t have sufficient bandwidth for the internet connection.

SharePoint Online

Microsoft ensures that a backup is created and managed appropriately or that the data on the platform is secure. Microsoft manages the fixes and updates in accordance with the company’s subscription model.

The global network of data centers provides high bandwidth and minimal latency. As a result, there is a noticeable increase in speed. Data protection is defined by industry-specific security standards.

SharePoint Online is a better choice if you:

  • Need to get started with SharePoint quickly and as soon as possible.
  • Need to reduce the costs of your dedicated infrastructure.
  • Looking to collaborate with external employees, consumers, and customers.
  • Need to give your employees access to integrated tools for mobile deployments.


The contest between SharePoint On-Premises and SharePoint Online is still going strong. Although Microsoft clearly places a higher emphasis on its cloud collaboration suite, SharePoint On-Premises hasn’t lost any of its potency. The current server version, on the other hand, demonstrates that SharePoint On-Premises has developed to become more user-friendly and customizable.

SharePoint On-Premises is a robust business solution. It is ideal for large and medium-sized businesses with well-developed infrastructures and adequate IT expenditures. It’s also a good choice for businesses that require a variety of solutions but don’t want to invest in different technologies.

SharePoint Online is a more compact platform when used as a standalone app. It’s a wonderful option for smaller businesses looking for a dynamic collaboration solution that doesn’t require a lot of maintenance. At the same time, large enterprises may find the standalone SharePoint Online insufficient. An enterprise-level Office 365 or Microsoft 365 subscription with a bigger collection of collaboration and productivity apps is available to the latter.

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