Compare SharePoint Online vs. On-Premises to Make a Smarter Decision on Which Best Fits Your Business Needs, Objectives & Strategy.

SharePoint Online


No servers, no hardware. Uses Microsoft Cloud data centers.Purchase and upkeep of servers and hardware is required
Internal resources are reduced. No IT strain to sustain your SharePoint environment. Updates are done automatically by Microsoft.Internal IT team must maintain servers, add updates and patches.
Information is stored in the CloudInformation is stored in-house. Good for strict legal and compliance requirements.
SharePoint Online is part of your Office 365 plan and is billed monthly per userOrganization must absorb licensing costs
Information is held up to industry specific security standards which are set and verified by third partiesIncreased direct control over your information and compliance standards
SharePoint Online relies on Microsoft’s built-in redundancy for data centers. No control over servers.Relies on owned customizable servers and hardware. Full control of server and access services.
User interface resembles SharePoint 2016User interface has better continuity
Tenant running on a multi-tenant serverSingle tenant
Microsoft manages the installation and deployment of updates and improvementsUpdates and improvements are installed and managed in-house
Limited custom developmentFreedom to do custom development
SP Admin Center and PowerShellCentral Administration and PowerShell
No infrastructure requirements. Migration work might be needed.Infrastructure requirements:

  • Windows Server 2012 R2
  • .NET Framework 4.5.2 or above
  • All prerequisites installed from the Prerequisites Installer
  • SQL Server 2014
Microsoft generates backups for entire farm for SharePoint Online and ensures system redundancy so services remain available if components in data center failOwner must create, test and manage backups of the dedicated data center
SharePoint Online has the ability to connect external users and it can easily be expanded with a variety of Azure servicesInfrastructure to connect external users must be built and regulated manually along with setting security features
Microsoft takes care of scaling on your behalfScaling is your responsibility. Detecting and rectifying bottlenecks lies within the user.
Tools and functions are initially ported and constantly updated by MicrosoftNew tools are made available later
SLA with 99.9% availabilityYou oversee availability

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 SharePoint Hybrid: The Best of Both.

SharePoint Hybrid allows you to securely extend your on-premises SharePoint farm to Office 365.  With SharePoint hybrid cloud, you can take advantage of the hyper scale and rapid feature releases in Office 365 while leveraging the speed and control of your on-premises SharePoint investment. 
Learn More About SharePoint Hybrid