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SharePoint is one of the components of the Microsoft Office 365 application suite. It allows users to easily collaborate and manage important office documents or data with Sites, Libraries, Lists, etc. Many businesses want to switch to SharePoint but often find it confusing to pick the right SharePoint version that can correctly handle their organization’s needs.
SharePoint has two different environments – SharePoint Online & SharePoint On-Premises. Both versions make file management and real-time collaboration effortless but have different fundamentals that target different business needs. To help you select the right SharePoint version according to your business requirements, we will differentiate between both versions in this SharePoint Online vs SharePoint On-Premises guide.
SharePoint Online vs SharePoint On-Premises – Feature Differences
Differentiating the two SharePoint platforms according to various aspects allows you to get a better understanding and insights in selecting the best SharePoint version for you.
SharePoint Costing
Money is the most important consideration when deciding on the SharePoint version.
SharePoint Online
- Less upfront cost, you don’t have to pay for infrastructure and don’t need a space to setup the server. Everything is Online.
- Require fewer people to manage the server, most of the things are handled by the Microsoft itself.
- It’s a pay-as-you-go model. You pay only for the resources you use. So complete utilization of your money.
SharePoint On-Premises
- To setup the SharePoint On-Premises server, you need to invest a huge amount. Buy complete infrastructure and rent space to setup the offline environment.
- Require more IT staff to configure, handle, update, and fix any issues in the SharePoint server. More staff means more expenses.
- SharePoint On-Premises has different versions like 2019, 2016, 2013, etc. To switch or update to any other version, you have to buy a new license and configure the server again, resulting in more investment.
Storage Requirement
Storage is another factor to consider in SharePoint Online vs SharePoint On-Premises guide.
SharePoint Online
- Work on the concept of storage pooling. The plan comes with a base storage, and on top of it, every user gets their own storage quota.
- If running low on storage, user can buy more storage as per requirement.
- Some components in SharePoint Online have limits, such as the site collection limit of 25TB.
SharePoint On-Premises
- No pooling concept is applied in on-premises version. Your purchasing power defines how much storage you want to have.
- User can upgrade storage quota according to their needs. But the storage has to be manually updated.
- Don’t have limits like the site collection 25TB limit. Your site can have as much space as it needs, depending on the content database.
Accessibility & Collaboration
Before you download and install any SharePoint version, it is important to know how much accessible it is
SharePoint Online
- It’s a cloud-based service, meaning you can access it anytime from anywhere with internet and a compatible device.
- SharePoint Online is fully compatible with mobile devices. You can do almost every major thing from your mobile device.
- You get access to various other collaborative tools, like Teams, OneDrive, and more, that boost your teamwork capabilities and make file sharing easy.
SharePoint On-Premises
- Its accessibility is limited to only the local network present inside your organization’s premises.
- Accessing the on-premises versions on the mobile device is a challenging task and may even require configuring other applications like VPN.
- Integration with OneDrive and other cloud applications is very limited in the offline SharePoint.
Maintenance
Online or on-premises, every SharePoint version requires regular maintenance, updates and customizations.
SharePoint Online
- You get automatic updates and the latest security patches. Microsoft handles complete maintenance work and makes sure you always have the latest version.
- Limited customizations and control in comparison to the SharePoint On-Premises version.
SharePoint On-Premises
- All the maintenance and updates have to be done manually. Your IT staff must regularly check and upgrade the software.
- Since you have the complete server in your premises, you get complete control over SharePoint.
Security & Compliance
Security and data privacy are top concerns in any business, small or big.
SharePoint Online
- Data security, user authentication, etc., are taken care of by Microsoft itself. With features like Data Loss Prevention (DLP) you can enjoy a worry-free working.
- Microsoft Office 365’s SharePoint also implement robust compliance policies and follows international standards like GDPR, HIPAA, etc.
SharePoint On-Premises
- You have to implement and define the security rules manually. It will require hiring an expert in SharePoint security. However, it is best for business that needs very customized security mechanisms.
- Data compliance and archiving are also done manually by your SharePoint admins.
SharePoint Online vs SharePoint On-Premises – When to Use
Check out these pointers and pick the most suitable version for you according to your use case.
When to use SharePoint Online?
SharePoint Online is a better choice if you want to:
- Get instant SharePoint deployment.
- Reduce the costs of your dedicated infrastructure
- Collaborate with external employees, consumers, and customers
- Give your employees access to integrated tools for mobile deployments
- Automatic backups & software updates.
- Offer scalable resources as per user requirements.
When to use SharePoint On-Premises?
SharePoint on-premises is a better choice if you have:
- Dedicated infrastructure for SharePoint
- Need for data on-premises because of compliance requirements
- Don’t have sufficient bandwidth for your internet connection
- Wants more customization than offered by SharePoint Online.
- Need more control & storage space.
Tabular Comparison for SharePoint Online vs SharePoint On-Premises
| SharePoint On-Premises | SharePoint Online |
|---|---|
| SharePoint on-premises requires a dedicated hardware and software infrastructure in the organization. | SharePoint Online is available within the Microsoft 365 Enterprise and Business editions. So, no hardware or software is required. |
| Administrator requires a constant backup to secure the data. | Microsoft team takes care of online data security. The user also can take a backup. |
| The updates must be done manually. | Microsoft makes sure that you are getting the latest version of SharePoint. |
| Customization is easier with SharePoint on-premises. | For customization, the user is required to contact the Microsoft support team. |
| The availability of the data is dependent on the platform infrastructure. | The availability of the data is dependent on the bandwidth of the Internet. |
| The security of the data is dependent on the internal IT team. | Microsoft has robust security protocols to protect the data. |
How to Safely Migrate SharePoint Data?
The above discussion helps in deciding which environment is ideal for your organization. However, whatever environment you choose, the most complicated task will be migrating data from file servers to SharePoint Online or SharePoint on-premises. Migrating data manually is not that simple. So, it is recommended to use third-party software like Kernel Migration for SharePoint, which helps with a quick and easy migration.
The SharePoint migration tool ensures complete data integrity & preserves original file/folder hierarchy. The tool allows you to easily migrate SharePoint permissions along with complete data.
With this advanced tool you can easily migrate from SharePoint 2010 to 2019 or SharePoint 2013 to 2019. And can effortlessly upgrade SharePoint from 2016 to 2019 version effortlessly.
Note: Backup your cloud data on your computer before you start the data migration task.
Conclusion
We have presented you with all the features and benefits of both SharePoint versions in this SharePoint Online vs SharePoint On-Premises guide. For small and mid-sized organizations, SharePoint Online will be a better choice. While large businesses that have the manpower, capital, and need for strict customizations should go with the on-premises version.
After choosing the SharePoint version, try Kernel Migration for SharePoint to easily move your data from a file server or any other cloud environment directly to SharePoint Online or On-Premises with guaranteed results. The software eliminates the requirement for any pre- or post-migration tasks and completes the SharePoint tenant to tenant migration securely.
Frequently Asked Questions
Ans: For a Startup where most of the workforce is working from different locations, your best option is SharePoint Online. It helps you with real-time communication and collaboration remotely from any device with just internet. Additionally, you can configure and deploy it very quickly.
Ans: To pick the right SharePoint environment, consider points like cost, storage, updates, security, control, customizations, accessibility, and scalability.
Ans: Yes, several tools exist that allow you to switch between SharePoint versions. You can download Microsoft’s SPMT tool for migration or try a third-party tool for 100% error-free data transfer.
