SharePoint On-Premise vs SharePoint Online

SharePoint On-Premise vs SharePoint Online

SharePoint is the Microsoft tool that helps in workplace collaboration. It is a secure and centralized platform that enables work teams to collaborate effectively, increase the efficiency of the business, and optimize data management. SharePoint is primarily used for knowledge and information sharing, electronic document management as well as content management within the organization. 

There are two versions of SharePoint used by businesses, SharePoint On-Premise and SharePoint Online. Both of these versions are useful depending on the requirements and prospects of the organization. In this blog, we’ll help you find the best version of SharePoint that will help you make your business’s workflow more efficient. 


With SharePoint on-premise, a license for each server and CAL for each user is needed. With the online solution, there is no need for such licenses; it includes Office 365 Business license. 

Both of the SharePoint versions offer access to the web application of Microsoft Office. The only difference is the type of license. The users need an exclusive license for viewing and editing documents with web apps when it comes to the on-premise version. On the other hand, the cloud platform allows viewing and editing documents directly from the cloud, and there is no need for additional licenses. 

Data Archive

You can make the decision according to the volume of data you need to archive. The On-premise version supports an unlimited amount of data to archive. The users only need to purchase a suitable category of hardware. 

With the Cloud solution, users don’t get the unlimited data storage option. The data storage limit set by Microsoft for each licensed user per business is 1TB + 10GB. If the user needs more space, it can be used through a specific add-on for Office 365 subscription. Again, SharePoint Online sites have a maximum threshold of 25 TB. 


With the online system, Microsoft handles the installations and how to distribute the working tool updates. Contrary to that, with the on-premise version, the company's IT department manages the updates and decides regarding the time to install and manage the available updates. Organizations need keep their work environment up to date to receive continuous support from Microsoft. 


Companies must keep in mind the costs before choosing the right software to support their enterprise. If you are considering an on-premise system, keep in mind the multiple servers and licenses required, adding up the costs. 

For an online solution, the cost depends on the number of users. There will be an initial subscription fee with which you get maintenance and updates too. It means you can cut down on the costs, and you can also benefit from cloud storage products, the global suite of collaboration, and a mailbox with an Office 365 license. 

When Should a Company Choose SharePoint On-Premise?

If your company already have a dedicated infrastructure, high compliance standards, and high customization requirements, then on-premise is the best choice. It is an ideal version for companies that want more storage space than what Microsoft offers and want their intranet to be available only on their network. 

When Should a Company Choose SharePoint Online?

For companies who want to build a scalable intranet, a cloud solution is a perfect option saving a lot on costs and reducing complexity. It saves a lot of your time and money that would otherwise be spent on creating the necessary infrastructure. By agreeing on the publisher updates, companies can take advantage of product developments. 


Choosing the right version of SharePoint is crucial for every business. Online and on-premise systems offer similar functional coverage. The choice depends on the requirements and regulations of the business. If you are thinking of migrating your intranet to SharePoint, numerous vendors like Xavor can help you. Xavor Corporation is a Microsoft and Oracle Partner company offering SharePoint migration and update services. 

Published by Olivia Brown


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