SharePoint On-Premise VS SharePoint Online- Complete Guidelines

Written By Kumar Raj
Anuraag Singh
Approved By Anuraag Singh
Published On February 27th, 2018
Reading Time 5 Minutes Reading

SharePoint is the Windows server-based collaborative platform. In enterprises, it is used to store, share, access and organize their information from any devices. There are two types of SharePoint- SharePoint On-premises and SharePoint Online. It is difficult decision to choose one of these. But, the organizations can always select both to combine On-premises and Online into a Hybrid. So, for the better understanding of users, there are several differences discussed between SharePoint On-premise vs SharePoint Online in this blog. If you want to migrate On-Premise to Office 365 SharePoint or vice-versa then you can refer SharePoint Organiser.

The Main Differences between SharePoint 2013 and SharePoint 2016

The following tabular information covers the comparison between SharePoint On-premise vs SharePoint Online.


Parameters SharePoint On-Premises SharePoint Online
1. Server Setup, Update & Maintenance Need more room (metaphorically and literally) & an IT team to maintain the server, to add updates and patches. Also, require more people & hardware. No need for server setup & maintenance or resources to maintain the server with periodically updating the packages & patch updates.
2. Release Cycle The release cycle is often three years at once. A fortnight at the most, So you stay top on the latest features and functionality.
3. Data Security Dependent on internal capabilities. Depends on industry-specific security standards.
4. Compliance Ensure your compliance are met at the data center. Compliance are Microsoft defined & get no or minimum influences in its forming.
5. Administrator Control Ability to control the services & their behavior. Minimum configuration possibilities.
6. Customization Full access to use & customize any SharePoint feature as needed. If the business is interested in customization, then SharePoint Online is not the ideal OS.
7. Price The cost for IT costs, licensing, server patches & upgrades increase based on the type of server being utilized & can be too steep for some business. SharePoint Online is included with the MS Office 365 plan & it is billed at a monthly rate per user, making it a more affordable option.
8. Disaster Recovery Depends upon the internal capabilities, policies, and procedures. Microsoft built- in redundancy and fail over for data centers
9. Development Can be deployed full trusted solution features. In the farm solutions, it has the scope as wide as the site collection, web application, or whole farm. Public facing website with much of customization is possible. Custom “managed path” allowed more control which can be delegated to power users. Cannot be deployed full trusted solution- Only sandbox solutions are possible with the scope up to the site collection level. Public facing website with much of customization is not possible. Custom “Managed path” allowed- more control cannot be delegated to power users & max privilege level is the site collection level.
10. Storage Expensive storage cost. Site collection has more than 100 GB Cheap storage cost. Site collection has less than 100 GB.
11. Availability It is defined by the internal HA/ DR procedures. Microsoft maintains the SLA of 99.9% uptime.
12. Public Facing Website It is possible to design and use. Not possible to design.
13. Online Web Apps Integration Need to install the Office web apps. Comes pre-configured. No need to install.
14. Backup Users need to create the backup. Microsoft creates backup & redundancy.
15. Updates Managed and installed by users. Managed & installed by Microsoft.
16. Scaling Responsibility for detecting & rectifying bottlenecks lies with users. Microsoft looks after scaling.

Which is Best Option SharePoint On-premise or SharePoint Online?

In SharePoint, Microsoft allows users to access all the main programs in the organization. Moreover, it also gives the opportunity to use Office products on their smartphones, tablets, and laptops, without incurring additional cost. Both SharePoint On-premise and Online have their own advantages and limitations. So, a user has to match the scenario of application to their needs & explore SharePoint On-Premise Vs SharePoint Online parameters.

When is SharePoint On-Premises the better option?

There are some situations given below, where it is seen that SharePoint On-premise is good for the users:

  • If users already have a customized infrastructure for SharePoint.
  • If users have already integrated external employees & customers in the infrastructure.
  • If it requires so-called farm solutions – so programs that get into sound in the system.
  • If users need the advanced data protection.
  • If internet connection does not have sufficient bandwidth.

When is SharePoint Online the better option?

There are some situations given below, where SharePoint Online is good for the users:

  • If a user wants to get things up & run quickly: in many cases, it will only take minutes to set up a SharePoint account, SharePoint will be at your fingertips in very less time.
  • If users want to reduce the cost of their dedicated infrastructure.
  • If a user needs to collaborate with external employees and partners or customers.
  • If a user wants to use new technologies such as Office Delve and Sway.
  • If users need to provide their employees with state-of-the-art tools for mobile deployment as well.

Wrapping up

In this article, both SharePoint On-premise and SharePoint Online is discussed in details. Also, we differentiate the SharePoint On-premise vs SharePoint Online, which helps users to choose one application for their use. Also, in the organization, the choice will depend entirely on the business needs, direction, and strategy.