Difference between SharePoint online and SharePoint on premise

SharePoint Online vs SharePoint on premise

As a organization, if you want to implement SharePoint, then it is very much necessary to know the difference between SharePoint Online (Office 365) and SharePoint on premise. Microsoft is heavily investing in Cloud, so day by day new features are coming in SharePoint online which is a part of Office 365.

Below are few points about SharePoint on premise and SharePoint Online

1- SharePoint On premise:

– In this case Organization will be full responsible for builds, configures, and manages its own SharePoint environment. You will be having full control of the environment and organizations can deploy custom solutions without any restrictions.




SharePoint Online vs SharePoint on premise
SharePoint Online vs on-premise

– The whole SharePoint server is within your corporate network. And your IT team has to maintain the SharePoint farm which includes regularly apply the patches and updates from Microsoft.

Check out SharePoint tutorial: Introduction to Portal Technology and SharePoint

– As a organization you can use your own active directory for authentication.

– You will have full access to the farm and you can also deploy farm solutions.

Below are the on premise versions released from Microsoft till now.

Version Free Version Paid Version Year
1.0 STS (SharePoint Team Services) SPS 2001(SharePoint Product Services) 2001
2.0 WSS 2.0 SPS 2003 2003
3.0 WSS 3.0 Microsoft Office SharePoint Server (MOSS) 2007 2006
2010 SharePoint Foundation Server SharePoint Server 2010 2010
2013 SharePoint Foundation Server SharePoint Server 2013 2013
2016          XXXXXX SharePoint Server 2016 2016

2- SharePoint Online:

Office 365 is the “cloud” solution from Microsoft. The services are hosted outside your organization, and Microsoft cloud is fully maintained by Microsoft. Office 365 was available for public on June 2011. As the name suggest Office 365 provides services like Office (Word, Excel, PowerPoint, OneNote, Outlook, Publisher, and Access) as well as other services like One drive for business, Exchange online, Skype for Business, SharePoint Online, and Yammer etc. Users can access all the services online without any headache of maintaining anything on-premise. So there will be no headache of on-premise server maintenance, patching or update activities etc.



The cloud service Office 365 is available on a subscription based from Microsoft. Users can opt for monthly or annually plans. It has plans for different types of use like Personal, Home, Business & Student. User can subscribe according to their requirement and then they can access the service from anywhere any device with an internet connection.

Office 365 provides SharePoint feature in terms of SharePoint online. SharePoint online is a perfect tool for collaboration, document management etc. for your organization. You can creates sites in less than a minute for your team to collaborate, to maintain documents, work with lists, announcements, blogs etc. Take advantages of check-in, check out features, see various versions of documents etc. You can share your documents with external users also in SharePoint online. SharePoint online is tightly integrated with Office products, you can work with word document and then publish to SharePoint online directly from word. Apart from these, there are number of advantages of SharePoint online.

Also read few SharePoint and office 365 articles.

So to choose from the two, you need to think about the current as well as future planned needs of your organization.
– What level of control and segregation is required for the data within my environment?
– What types of service-level agreements (SLAs) are in place for the data within my organization?
– Do we have the internal resources needed to support our environment?
– What types of customizations and custom code will need to be supported within our environment?


About Bijay Kumar

I am Bijay from Odisha, India. Currently working with a reputed organization in Bangalore. I am Microsoft Office Servers and Services (SharePoint) MVP (4 times). I works in SharePoint 2016/2013/2010, SharePoint Online Office 365 etc. Check out My MVP Profile.

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