Choosing between SharePoint On Premise vs SharePoint Online can be a tough decision. Both have their strengths and weaknesses. Do you want to know which one is better for your business?

We will break it down in a very easier way for you to understand in this blog. So that you can make the right choice. If you still find yourself in a dilemma after reading this blog, feel free to reach out to us, and our SharePoint consultants will be happy to assist you.

What is SharePoint On-Premises?

SharePoint On-Premises is the traditional version of SharePoint. It is hosted completely on your own servers. Meaning you have complete control over the system.

On-Premises is often chosen by companies with strict security requirements. But managing SharePoint On-Premises requires significant IT resources and ongoing maintenance.

What is SharePoint Online?

SharePoint Online is the cloud-based version of On-Premises hosted by Microsoft in their data center. It comes as a part of the Microsoft 365 suite and offers the same core functionalities as on-Premises version.

But it is loaded with benefits of cloud. No more server maintenance, upgrades, or security patches. Microsoft takes care of all that for you in SharePoint Online. Also, you get seamless integration with other Microsoft 365 apps.

SharePoint On Premise vs Online: Complete Differences

Feature	SharePoint Online	SharePoint On Premises
Security	Microsoft-managed, robust cloud security	Managed internally, full control
Cost	Subscription-based, no hardware costs	Upfront hardware costs, ongoing maintenance
Scalability	Easily scalable, no hardware limitations	Hardware-dependent scalability
Maintenance	Microsoft handles maintenance	Requires internal IT resources
Integration	Seamless integration with Microsoft 365	Can integrate with On-Premises systems
Modern Experience	Modern experience by default, with frequent updates	Modern experience available with updates
AI Integration	Extensive AI features like Copilot, content insights, and automated tagging	Limited AI capabilities
Collaboration Tools	Deeply integrated with Microsoft Teams and other Office 365 apps	Integrated with On-Premises tools
Customization	Customization available, but with limits	Extensive customization options
Access	Accessible from anywhere with internet	Requires VPN for remote access
Upgrades	Automatic upgrades by Microsoft	Manual upgrades needed
Hosting	Hosted on Microsoft's cloud servers	Hosted on your own servers
Data Residency	Data stored in Microsoft's data centers (location options available)	Data stored on your On-Premises servers
Compliance	Built-in compliance features	Can meet strict compliance requirements
Deployment Time	Typically deployed within days or weeks	Can take weeks or months
Backup and Recovery	Microsoft-managed backup and disaster recovery	Managed internally
Hybrid Deployment	Built-in support for hybrid deployments	Possible to set up a hybrid environment
User Experience	Intuitive interface, modern design	May require customization for a modern experience
Performance	Better performance due to cloud infrastructure	Can vary depending on hardware and network configuration
Support	Microsoft-managed support	Internal IT support or third-party vendors

Important questions to ask yourself when choosing between SharePoint On Premises and SharePoint Online

Control

Do you need complete control over your SharePoint environment?
Are you comfortable with Microsoft managing the backend?

IT Resources

Do you have the internal IT resources to manage and maintain a SharePoint On Premises environment?

Cost

Are you prepared for the upfront hardware costs of On-Premises?
Would you prefer the subscription model of SharePoint Online?

Access

How important is remote access to your business?
SharePoint Online offers easy access from anywhere.
SharePoint On Premises may require a VPN.

Security

Do you have specific security requires your data to reside in your server?
Are you confident in Microsoft’s cloud security?

Compliance

Can SharePoint Online meet your industry’s strict compliance requirements?
Do you need the control offered by on-Premises for compliance purposes?

When to choose SharePoint Online?

Remote Work

If your team works remotely.
When you need to access SharePoint from multiple locations because your work demands it.

Limited IT Resources

When you don’t have a large IT team for support.
To eliminate the hassle of managing multiple servers.

Scalability

If you anticipate rapid growth and need a solution that can easily scale.
SharePoint Online offers unparallel scalability and flexibility.

Integration with Microsoft 365

When integration with Microsoft 365 apps in necessary for productivity.

Cost

SharePoint Online offer a predictable subscription model.
It is a more budget friendly option with no upfront hardware costs.

When to choose SharePoint On Premises?

Complete Control

If you need full control over your SharePoint environment.
From basic customization to security settings, SharePoint On premises give you full control.

Compliance

When your business demands stringent compliance requirements that the cloud can’t meet.

Existing Infrastructure

When you have already invested heavily in On-Premises infrastructure and systems.
Sticking with SharePoint On Premises might make sense.

Customization Needs

If your business requires extensive customization.
SharePoint On Premises version offer flexibility for complex customization needs.

Is there a right choice in the SharePoint On Premise vs Online debate?

There is no one right answer when it comes to which is better option. Both SharePoint versions have its own ups and downs. It all comes down to your needs. By considering all the factors that we have discussed above, you make the right decision and choose which ever one will add more value to your business.

SharePoint On Premise vs online: Which is better?