SharePoint Online vs SharePoint On-Premises

onHave you ever thought of comparing various SharePoint environment to understand which is better, well, it’s your lucky day! Today we are going to take a look at the difference between a SharePoint Online and SharePoint 2016 On-Premises. Our main propaganda behind this blog is to help you and your business make an informed decision while choosing the right platform.

Every business has different aims and they will affect you while choosing an On-Premises server or a host in the cloud. With each update and new releases, SharePoint Online for Office 365 has become mature while keeping its lean (Cloud-based foundation) quality that attracted the enterprises in the first place. The 2016 On-Premises on the other hand, has been more reliable and the security and one could feel when knowing that their corporate data is protected and secure on-site. Furthermore, with the new hybrid functionality and compatibility of Office 365, it is capable to suit any demand.

Key Differences between SharePoint 2016 On-Premises versus SharePoint Online

Resource Requirements

When considering SharePoint On-Premises versus the Cloud, the significant difference between the two is that to run SharePoint 2016 On-Premises you’ll require more space and an IT team to manage the server and add updates and fixes.

This means, a need for more people and resources. With the Cloud, your internal resource is less utilized and there is no need for any hardware and even work with high level of productivity.

Where the Information Lies

As a business, the location where your corporate data is stored means a lot. A few organizations are unwilling and don’t want to store their data in the Cloud for reasons of legality or consistence – so SharePoint 2016 On-Premises is the more reliable option.

Updates and Infrastructure

SharePoint On-Premises needs an IT team to maintain them and is constantly updated with the latest with patches and different updates, while its online counterpart is updated automatically by Microsoft. However, the size and number of the package are reduced extensively in SharePoint 2016, and the downtime previously required when running updates has been removed.

This shows that how Microsoft is concerned on the needs of organizations and their sense of duty to ultimately create a SharePoint platform that is intense and light on its feet in any incarnation.


One of the main things every business entity will consider is, what it takes to set up a SharePoint from a financial viewpoint. If you go with the On-Premises solution, you will have to purchase and maintain the hardware alongside the cost of licenses etc. SharePoint Online on the other hand is a part of an Office 365 solution and is billed monthly.

Internal Capabilities Vs Microsoft Master Data Services (MDS)

Your choice will likewise depend on what your organization can bring to the table in regards to business continuity, data security and compliance standards. The On-Premises solution is more subject to your internal capacities, yet it gives you more straightforward control over your data and compliance standards, rather than data being held up to industry-particular security standards or being verified by unknown entities.

What’s New in SharePoint 2016?

UI changes have been updated to make the look and feel of SharePoint 2016 identical to Office 365 so there’s equality while exploring both. This is notable when we consider the new hybrid possibilities with SharePoint 2016 and Office 365 because making SharePoint 2016 work with Office 365 is a major update.

For instance, with SharePoint 2016 your My Sites can be redirected to your OneDrive for Business in Office 365. That implies a user tapping on OneDrive will be diverted to the Office 365 My Site as opposed to the On-Premises solution.

The Case for On-Premises, the Cloud, and Hybrid

We’ve heard the case for migration to the Cloud over and over. It’s as inescapable as gravity: “we’re moving our organization to the Cloud”. However, everybody not wants to (or can) allow their corporate data off of local servers, far from the office. Utilizing SharePoint On-Premises for your business in such a way is currently a feasible option.

The advantage of SharePoint 2016 is the ability it offers to stay On-Premises while utilizing Office 365’s capabilities.

For instance, for our On-Premises disciples, another Hybrid Cloud Search experience implies an Office 365 search will consider the On-Premises SharePoint Search Index into account and generate results from both. Clients should understand that it’s a one-way path; if they attempt to utilize the search in On-Premises, the results will be local only.

Mobile Collaboration

SharePoint 2016 guarantees a touch-enabled interface for cell phones – more compatible with how we work today – and drives towards consistent document collaboration with Durable Links. Links that are sent between users will open and can be taken a shot at, regardless of whether the file name is changed or the location the is document moved.

Speaking of document management, OneDrive for Business intends to give users a focal, common place to help them to work with their documents regardless of where they are. They’ll be able to explore their Sites and libraries from there.


As someone said “SharePoint isn’t an afterthought anymore. Nor is it a thing that is somewhere on the shelf. It’s back in the lab, getting the attention it deserves and, to be honest, getting a makeover”.

After all, the decision will depend totally on your business needs. By considering these different facts, you should be able to settle on a choice which reflects current reality and fits your requirements.

If you pick Aufait to help you to make the move to SharePoint Online or stay on-premises, we support both versions, and will be here to manage you anywhere anytime!


April 25th, 2018 by