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IT Tips & Tricks

10 Points to Consider: SharePoint Online vs
On-Premises

Published 3 June 2024

While SharePoint® Online and its on-prem counterpart, SharePoint Server Subscription Edition, have many similarities, it’s most likely their differences that will sway your decision one way or the other. A couple of primary considerations are cost and security, but hardware, updates, infrastructure, backups, customizations and scalability have an impact too, so we’ll address all those points here.

Key Differences That Will Make a Difference toYou

As you know, the most obvious difference is that SharePoint Online is in the cloud, while SharePoint Server Subscription Edition (SPSE) is on-premise. It is precisely that difference that accounts for the variables in the ten points mentioned in the title. But how do they impact your decision as to which way to go? Let’s dig into that.

SharePoint Online performs continuous crawls every 15 minutes to keep the search index up to date and ensure the freshness of search results.

Dedicated Hardware

  • SharePoint Online: Relies entirely on Microsoft® Cloud data centers. While it requires no dedicated on-site hardware nor the personnel to run and maintain it, every user is still going to need a computer to access SharePoint Online. Here are Microsoft’s
    recommended requirements:
    • Computer and processor: Windows® OS: 1.6 GHz or faster,
      2-core processor.
    • Memory: Windows OS: 4 GB RAM.
    • Hard disk: Windows OS: 4 GB of available disk space.
    • Display: Windows OS: 1280 x 768 screen resolution.
    • Graphics capability.
    • Operating system.
    • Internet connection.
  • SharePoint Online: Relies entirely on Microsoft® Cloud data centers. While it requires no dedicated on-site hardware nor the personnel to run and maintain it, every user is still going to need a computer to access SharePoint Online. Here are Microsoft’s recommended requirements:
    • Computer and processor: Windows® OS: 1.6 GHz or faster, 2-core processor.
    • Memory: Windows OS: 4 GB RAM.
    • Hard disk: Windows OS: 4 GB of available disk space.
    • Display: Windows OS: 1280 x 768 screen resolution.
    • Graphics capability.
    • Operating system.
    • Internet connection.
Maintenance-services-Final-685548669

Maintenance: DIY or contract it out?

Of course, unless you’re willing to contract out your maintenance services, you may still require an IT department — albeit a scaled-down crew. For specific requirement details see the Microsoft website.

  • SharePoint On-Premises: Hard disk space and the number of drives required depend on the amount of content and the way you choose to distribute data for a SharePoint environment. Since there are multiple installation scenarios for SharePoint Server Subscription Edition, consult Microsoft to establish exactly what your hardware requirements are.

Updates and Infrastructure

As you no doubt already know, IT infrastructure is the required collection of components that allow a company to build and run applications that support its business. This includes hardware, networking, operating systems, data storage and software, much of which requires updates to remain fully functional and secure. (If you’ve ever noticed that updates and infrastructure are often mentioned together, that’s why. Infrastructure and updates are like cake and calories — you can’t have one without the other.) Think about it, where would your infrastructure be without the required updates and security patches?

  • SharePoint Online: Microsoft releases Public Updates, which include SharePoint Cumulative Updates (CUs) every second Tuesday of the month. SharePoint Online also performs continuous crawls every 15 minutes to keep the search index up to date and ensure the freshness of search results.

Admins effectively have 180 days to restore an item, if needed, before it is permanently deleted.

  • SharePoint On-Premises: Infrastructure is maintained by your internal IT team who will need to install a single software update from Microsoft each month to be fully up to date with the latest security fixes, bug fixes and new feature experiences.

Data Backups

  • SharePoint Online: Backups are managed every 12 hours by Microsoft and each backup is retained for 14 days. Additionally, in terms of data retention, any SharePoint Online documents, list items, versions, lists and libraries that are placed in the recycle bin are retained for 90 days or until a user manually deletes or restores them. After 90 days, anything remaining in the first recycle bin is moved into a second-stage recycle bin where they are kept for a further 90 days, effectively giving admins 180 days to restore an item, if needed, before it is
    permanently deleted.
  • SharePoint On-Premises: Backups will need to be created, tested and managed by your IT support team within your local environment.

Data Storage

Data-Storage-Final-570323528

The Cloud: “Plenty of storage” does not translate to “Ignore the data sprawl.”

  • SharePoint Online: Cloud-based data storage of 1 TB + 10 GB per license to a total of 25 TB. Additional storage may be added at a cost of around 20 cents per gigabyte (GB) per month, which doesn’t sound like much until you remember that when it comes to data, one GB is nothing today. Better to think of it as $200 per terabyte (TB) per month, so, unless you have an IT budget to burn, preventing data sprawl is a must.
  • SharePoint On-Premises: Data storage capacity is determined by your servers and is stored on your local network. Preventing sprawl and minimizing redundant, obsolete and trivial data is, yet again, a
    smart choice.
  • SharePoint On-Premises: Data storage capacity is determined by your servers and is stored on your local network. Preventing sprawl and minimizing redundant, obsolete and trivial data is, yet again, a smart choice.

Costs

  • SharePoint Online: Available either as a standalone version (which includes only SharePoint, OneDrive™ and Microsoft Lists™) or as part of your Microsoft 365® plan. Billed per user, per month. See the “Pricing for SharePoint Online and On-Premise” section.
  • SharePoint On-Premises: You’re responsible for the purchase and upkeep of hardware and software, along with the cost of licenses and so forth. Also billed per user, per month. See details below in the “Pricing for SharePoint Online and On-Premise” section.

Data Security

  • SharePoint Online: SharePoint Online uses five layers of security to protect your data: physical data center security, data encryption, secure network infrastructure, access security and application security. Microsoft maintains your data according to industry-specific security standards. See expanded data in the “Online vs. On-Prem: Data Security Differences” section below.

Infrastructure and updates are like cake and calories — you can’t have one without the other.

Customizations

  • SharePoint Online: SharePoint Online offers a variety of customization options, including the ability to create custom lists, libraries, workflows and web parts. Some of the main elements that can be
    customized include:
    • Design: This includes modifying styles, colors, landing pages, master pages, logos, and page layouts.
    • Navigation: This helps users quickly access relevant information.
    • Page content: This includes the search functionality.
  • SharePoint Online: SharePoint Online offers a variety of customization options, including the ability to create custom lists, libraries, workflows and web parts. Some of the main elements that can be customized include:
    • Design: This includes modifying styles, colors, landing pages, master pages, logos, and page layouts.
    • Navigation: This helps users quickly access relevant information.
    • Page content: This includes the search functionality.

Beyond the above, limited customizations are available.

  • SharePoint On-Premises: As the king of your castle, you get the flexibility of unlimited customizations. Your turf = your rules.

External Users

Backups are managed every 12 hours by Microsoft and each backup is retained for 14 days.

  • SharePoint Online: External sharing features allow users in your organization to share content with those outside of the organization — such as partners, vendors, customers and clients.
  • SharePoint On-Premises: As the network admin or IT manager, you can make infrastructure adjustments to allow external users to access your SharePoint
    on-prem server.
  • SharePoint Online: External sharing features allow users in your organization to share content with those outside of the organization — such as partners, vendors, customers and clients.
  • SharePoint On-Premises: As the network admin or IT manager, you can make infrastructure adjustments to allow external users to access your SharePoint on-prem server.

Scalability

  • SharePoint Online: Microsoft takes care of scalability, ensuring seamless growth without compromising functionality. Scaling up or down is easy and will be reflected in the monthly cost.
  • SharePoint On-Premises: Scalability is your responsibility and will be limited by the size of your servers.

New Tools

  • SharePoint Online: Microsoft continuously introduces and updates new tools and functions. The release of Copilot, for example, gives you an AI assistant to help you work smarter, be more productive, boost creativity and stay connected. Copilot is currently available as an add-on for M365 Business Standard and Business Premium.
  • SharePoint On-Premises: Acquiring new tools and functions is up to your IT team and the organization’s needs.

Since cost and security options are often deciding factors, we’ll take a more in-depth look at these two points to give you an idea of what
to expect.

  • SharePoint Online: Microsoft continuously introduces and updates new tools and functions. The release of Copilot, for example, gives you an AI assistant to help you work smarter, be more productive, boost creativity and stay connected. Copilot is currently available as an add-on for M365 Business Standard and Business Premium.
  • SharePoint On-Premises: Acquiring new tools and functions is up to your IT team and the organization’s needs.

Since cost and security options are often deciding factors, we’ll take a more in-depth look at these two points to give you an idea of what to expect.

Pricing for SharePoint Online vs.
On-Premises

Pricing for SharePoint Online vs. On-Premises

For those considering SharePoint Online, here are your options:

  • SharePoint Plan 1 is the standalone version of SharePoint, costs $5 per user, per month and includes OneDrive and Microsoft Lists. It’s ideal for small- to mid-sized companies and requires an
    annual subscription.

Next are the Basic, Standard and Premium plans. All include SharePoint Online as part of Microsoft 365. Prices are correct as of April 2024 and all require a 12-month commitment.

  • Microsoft 365 Business Basic costs $6 per user, per month. It includes OneDrive, Teams Exchange plus:
    • Identity, access and user management for up to 300 employees.
    • Custom business email (you@yourbusiness.com).
    • Web and mobile versions of Word®, Excel®, PowerPoint®
      and Outlook®.
    • Chat, call and video conference with Microsoft Teams®.
    • 1 TB of Cloud storage per employee.
    • 10+ additional apps for your business needs (Microsoft Bookings®, Planner®, Forms® and others).
    • Automatic spam and malware filtering.
    • Anytime phone and web support.
  • Microsoft 365 Business Standard costs $12.50 per user, per month and includes all of the features of Business
    Basic, plus:
    • Desktop versions of Word, Excel, PowerPoint
      and Outlook.
    • Webinars with attendee registration and reporting.
    • Collaborative workspaces to co-create using Loop®.
    • Video editing and design tools with Clipchamp®.
  • Microsoft 365 Business Standard costs $12.50 per user, per month and includes all of the features of Business Basic, plus:
    • Desktop versions of Word, Excel, PowerPoint and Outlook.
    • Webinars with attendee registration and reporting.
    • Collaborative workspaces to co-create using Loop®.
    • Video editing and design tools with Clipchamp®.

If the nature of your business dictates specific security requirements or precludes cloud hosting, on-prem is your best solution.

  • Microsoft 365 Business Premium costs $22.00 per user, per month and includes everything in Business Standard, plus:
    • Advanced identity and access management.
    • Enhanced cyber threat protection against viruses and
      phishing attacks.
    • Enterprise-grade device and endpoint protection.
    • Discover, classify and protect sensitive information.
  • Microsoft 365 Business Premium costs $22.00 per user, per month and includes everything in Business Standard, plus:
    • Advanced identity and access management.
    • Enhanced cyber threat protection against viruses and phishing attacks.
    • Enterprise-grade device and endpoint protection.
    • Discover, classify and protect sensitive information.

For those considering SharePoint Server Subscription Edition, costs range from $15 to $30 per user, per month, depending on your requirements. For common questions about SPSE licensing, see here.

For general information about licensing, it’s advisable to contact Microsoft directly.

Online vs. On-Prem: Data
Security Differences

Online vs. On-Prem: Data Security Differences

  • SharePoint Online: Data security is another key concern that often arises in the context of cloud applications. If you’re worried whether your data would be safe in SharePoint Online, here are some facts
    to consider.

    According to Microsoft: All customer data stored in SharePoint Online is encrypted with one or more AES 256-bit keys and is distributed across the data center as follows. (Every step of this encryption process is FIPS 140-2 Level 2 validated. For additional information about FIPS 140-2 compliance, see FIPS 140-2 Compliance.)

    • Each file is split into one or more chunks, depending on the file size. Each chunk is then encrypted using its own unique AES 256-bit key.
    • When a file is updated, the update is handled in the same way: the change is split into one or more chunks and each chunk is encrypted with a separate unique key.
    • These chunks — files, pieces of files and update deltas — are stored as blobs in Azure® storage and are randomly distributed across multiple Azure storage accounts.
    • The set of encryption keys for these chunks of customer data is,
      itself, encrypted.
    • The map used to re-assemble the file is stored in the Content Database along with the encrypted keys, separately from the master key needed to decrypt them.
    • Each Azure storage account has its own unique credentials per access type (read, write, enumerate and delete). Each set of credentials is held in the secure Key Store and is regularly refreshed.
  • SharePoint Online: Data security is another key concern that often arises in the context of cloud applications. If you’re worried whether your data would be safe in SharePoint Online, here are some facts to consider.

    According to Microsoft: All customer data stored in SharePoint Online is encrypted with one or more AES 256-bit keys and is distributed across the data center as follows. (Every step of this encryption process is FIPS 140-2 Level 2 validated. For additional information about FIPS 140-2 compliance, see FIPS 140-2 Compliance.)

    • Each file is split into one or more chunks, depending on the file size. Each chunk is then encrypted using its own unique AES 256-bit key.
    • When a file is updated, the update is handled in the same way: the change is split into one or more chunks and each chunk is encrypted with a separate unique key.
    • These chunks — files, pieces of files and update deltas — are stored as blobs in Azure® storage and are randomly distributed across multiple Azure storage accounts.
    • The set of encryption keys for these chunks of customer data is, itself, encrypted.
    • The map used to re-assemble the file is stored in the Content Database along with the encrypted keys, separately from the master key needed to decrypt them.
    • Each Azure storage account has its own unique credentials per access type (read, write, enumerate and delete). Each set of credentials is held in the secure Key Store and is regularly refreshed.
Data-Security-Final-651549737

Are five layers of security enough for you? If not, on-prem might be your best bet.

Also, as mentioned earlier, SharePoint Online uses five layers of security — physical data center security, data encryption, secure network infrastructure, access security and application security — to protect
your data.

The truth is that cloud service providers constantly work on developing updated safety solutions so that your most confidential data
is protected.

Also, as mentioned earlier, SharePoint Online uses five layers of security — physical data center security, data encryption, secure network infrastructure, access security and application security — to protect your data.

The truth is that cloud service providers constantly work on developing updated safety solutions so that your most confidential data is protected.

Having said that, there are circumstances when the very nature of your business may have specific security requirements or may forbid public cloud hosting. In that situation, SharePoint Server Subscription Edition is your best solution.

  • SharePoint On-Premises: Adherence to regulatory protocols and safeguarding against potential security breaches remains an ongoing priority for organizations and their IT departments. SPSE ensures both.

In terms of security, SharePoint Server Subscription Edition offers
the following:

If your business demands stringent security practices, then SPSE may be the way to go.

While approximately 86% of SharePoint users rely on SharePoint Online, 14% elect to remain on-prem. For them, perhaps, an on-prem version is a necessity and there’s a lot to like about the on-prem version of SharePoint.

SharePoint Server Subscription Edition:

The SharePoint on-prem version provides a robust business solution characterized by scalability, reliability and fortified security measures. It enables the use of cutting-edge hardware advancements and computing technologies, combined with fast and efficient data processing at a reduced cost. This on-premises option offers:

  • Elevated compliance standards.
  • High customization potential.
  • Potentially more storage space on your own servers than is offered in
    SharePoint Online.
  • Greater architectural control of your SharePoint farms.
  • For security purposes, your intranet can be limited to your business network.

To explore SPSE in greater detail, visit the Microsoft site.

  • Elevated compliance standards.
  • High customization potential.
  • Potentially more storage space on your own servers than is offered in SharePoint Online.
  • Greater architectural control of your SharePoint farms.
  • For security purposes, your intranet can be limited to your business network.

To explore SPSE in greater detail, visit the Microsoft site.

Unless you have an IT budget to burn, preventing data sprawl is
a must.

Unless you have an IT budget to burn, preventing data sprawl is a must.

Dealer’s Choice: No Poker Face Required

Ultimately, choosing between SharePoint Online and SharePoint Server Subscription Edition depends on your organization's specific needs, resources and long-term goals. While SharePoint Online offers advantages such as accessibility, scalability and seamless updates, SPSE provides greater control over infrastructure, customization and
security options.

Whether you opt for the cloud-based flexibility of SharePoint Online or the on-premises reliability of SharePoint Server Subscription Edition, both platforms remain powerful tools for enhancing collaboration, productivity and information management within your organization. Understanding the nuances of each solution empowers you to make an informed decision that best aligns with your business objectives and IT capabilities. What’s your choice going to be?

Preventing a Common Cause of Data Loss During Migration

For any business, cost and security are considerations, but hardware, updates, infrastructure, backups, customizations and scalability have an impact too.

If you’re considering migrating to SharePoint — whether online or on-prem — call a helpful LinkTek Consultant at 727-442-1822 to discuss a common cause of data loss and how to prevent it.

Alternatively, visit LinkTek.com for more information, to chat with us online, or to explore a free tool or free trial.

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