Sharepoint is the Microsoft tool developed for workplace collaboration and mainly used for content management, electronic document management and knowledge sharing in the company. SharePoint is a centralised, secure platform where work teams can collaborate, optimise data management and increase efficiency.
There are two versions of SharePoint: SharePoint Online and SharePoint Server (On-premise). Both can be useful depending on the prospects of the company and on the basis of the business.
What is the best version of SharePoint for your business needs? Find out how to choose the best version of Sharepoint to make your company's workflows more efficient!
What you will find in this article
- How to choose the right software for your business
- Differences between SharePoint Online and SharePoint On-Premise
- Why you should choose SharePoint Online
- When to prefer SharePoint On-Premise
You can base your choice on the volume of data you need to archive. The on-premise solution can support an unlimited amount of data. All you need to do is purchase the right category of hardware.
SharePoint Cloud, on the other hand, does not include an unlimited data storage offer included in the subscription price. Microsoft has set the limit to 1TB + 10GB for each licensed user per enterprise. If you need more space, you can use it through a specific add-on for your Office 365 subscription.
There is also a maximum threshold for SharePoint Online sites of 25 TB.
In order to choose the right software to support the work in the company, costs must always be taken into account. If you're considering the on-premises solution, keep in mind that SharePoint platforms include multiple servers and each of them must have an appropriate license and user CAL + licenses for SQL Server and Windows Server.
For the online version, the costs are related to the number of users. The subscription allows you to have a corporate SharePoint platform without having to worry about any type of maintenance. Plus, with an Office 365 license you can benefit from the global suite of collaboration, mailbox and cloud storage products.
SharePoint Server (On-premise) requires a license for each server and a CAL (Standard or Enterprise) for each user. SharePoint Online is included in the Office 365 Business or Enterprise license.
It also has a dedicated license called SharePoint Online P1 / P2 and intended for those users who do not need the mailbox.
Both versions allow access to the web applications of MIcrosoft Office. The only thing that changes is the license type.
The On-premise version requires an exclusive license to view and edit documents with web apps.
The cloud version, on the other hand, allows you to view documents and edit them directly from the cloud, without the need for additional licenses.
Updates to the On-premise version of the intranet are managed by the company's IT department that chooses when to install and manage available updates. You always need to make sure your work environment is up to date to continue getting support from Microsoft.
For the online version, Microsoft manages the installation and distribution of working tool updates.
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SharePoint Online VS On-Premises: what to consider when choosing
If you're considering building your corporate intranet with SharePoint, but aren't sure whether to use cloud or on-premise, you should also consider recent trends.
Microsoft has adopted the "cloud-first" strategy. This means that Microsoft first implements the new features for online versions, and only later makes them available for local installations. This can make you understand the direction that Microsoft has chosen to take for the future.
Initially, new and modern tools will be available only for the cloud, only later for on-site installations. And it's not 100% sure that all features will be available for the product on-premise - any integrations with other Office 365 features may not be available locally.
|SHAREPOINT ONLINE||SHAREPOINT ON-PREMISE|
|No servers, no hardware. Use of Microsoft Cloud data centres.||Requires purchase of dedicated hardware.|
|Reduction of internal resources. Automatic updates carried out by Microsoft.||The internal IT team must manage the servers, set up updates and patches.|
|Information stored in the cloud.||Information stored on your local network.|
|It's part of your Office 365 plan; monthly expenses based on the number of users.||The company must absorb the license costs for servers and users.|
|Information is maintained according to industry-specific security standards.||The company is responsible for the security of the servers.|
|Based on Microsoft's built-in redundancy. No control over servers.||It relies on proprietary customisable servers and hardware. Full control of the server and access services.|
|Running on a multi-tenant server.||Single farm.|
|Microsoft manages the installation and distribution of updates and enhancements.||Updates are installed and managed internally.|
|Limited customisations.||Unlimited customisations.|
|Backups generated by Microsoft.||The owner must create, test and manage backups of the dedicated data centre.|
|It can connect external users and can be easily expanded with a variety of Azure services.||The infrastructure for connecting external users must be built and adjusted manually.|
|Microsoft takes care of the scalability of the service.||Scalability is the responsibility of the service purchaser.|
|The tools and functions are developed and continuously updated by Microsoft.||The new tools are only made available at a later date, and not all of them.|
When to choose SharePoint Online?
Cloud service is the best choice for companies looking to build a scalable intranet. It saves costs and reduces complexity.
With the online version, you make a sensible choice with short-term effects, because you avoid spending time and money on creating the necessary infrastructure.
Going forward, you can take advantage of product developments by agreeing to follow the publisher updates roadmap.
When to choose SharePoint on premise?
On-Premise is the best choice if you already have a dedicated infrastructure; if you work in an organisation with high compliance standards; if you need high customisation requirements and achieve economies of scale on licenses.
It is the ideal solution for companies looking for more storage space than Microsoft offers or greater control over the architecture of their farms.
If you need your intranet to be available only on your company's network, SharePoint On-Premise is the ideal solution.
Choosing the right version of SharePoint is essential for your business. On-premise and cloud solutions are similar in terms of basic functional coverage. The choice depends on which of the two versions will suit different requirements and regulations.
If you're not sure which version is right for your needs, you can also consider a hybrid intranet.
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