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How to select the best between Cloud-based SharePoint and On-Premise SharePoint?

SharePoint is the world’s most preferred collaboration and content management system. With SharePoint, businesses, and enterprises – store, share, access, and manage business-critical information. With a similar interface like Microsoft Office Suite and minimal technical maintenance requirement, SharePoint has always been the first choice.

Apart from file sharing and documentation of your crucial business projects, SharePoint also suffices the need for website building, social networking, business intelligence and intranet portals.  With these advantages of SharePoint Desktop, there has been a paradigm shift in the way businesses use to communicate, share and collaborate.

To achieve optimal performance and simplify accessibility, you can further avail SharePoint hosting as well. A cloud hosting provider deploys SharePoint on a cloud server and also also helps you to manage files. There are several advantages that you can get by moving SharePoint hosting on a cloud server.

However, if you are new to SharePoint and finding it difficult to deploy SharePoint, then you have to options. Firstly, with an assistance of a cloud hosting service provider, you can host SharePoint on a cloud server, and secondly, you can host SharePoint on an On-Premise server. And, the overall performance, cost, and maintenance of SharePoint largely matter on how you deploy and host it.

It, therefore, becomes quintessential to understand the differences between Cloud-based SharePoint and On-Premise SharePoint. In this blog post, we discuss the key differences between the bost and help you get the most feasible, dynamic and robust environment for using SharePoint. Let’s start.

Cloud-based SharePoint vs On-Premise SharePoint

Features Cloud-based SharePoint On-Premise SharePoint
Availability SharePoint hosted on a cloud server can be accessed anytime, anywhere and from any device. By hosting SharePoint on an in-house server, you are entirely responsible for its accessibility.
Data Backup Files and data are automatically backed up every 24 hours in the safe and secure cloud server. Data backup is again depended on the modus operandi of your in-house infrastructure and strategy.
Updates Managed and installed by a cloud hosting service provider. You have to yourself look for updates and manually install it.
Scaling Cloud-based SharePoint is completely scalable. You can anytime scale up or down the resources as per your business requirements. The responsibility of scaling up or down the resources again depends on you.
Connection of External Users Essential infrastructure for establishing a connection of external users is included in the hosting package. You need to build additional infrastructure for connecting with external users.
Modern Collaboration Tools Sophisticated collaboration tools are readily available. You need to have modern collaboration tools by your side.
Cost Cloud-based SharePoint is economical. On-Premise SharePoint is also costly and needs a hefty amount of investment
Security With SSAE-16 certified and Tier IV data centers, your SharePoint data are always safe and secure. Security of On-Premise SharePoint totally depends on your business planning and IT infrastructure.

After this comparison between cloud-based SharePoint and On-Premise SharePoint, it is quite evident that SharePoint hosted on a cloud server should be the first choice of businesses, especially for the ones who are SMBs and budding startups, who doesn’t have high IT budget. Well, after understanding differences between Cloud-based SharePoint hosting and On-Premise SharePoint hosting, there are a few deciding factors you need to know before selecting the one.

Cloud-based SharePoint Hosting vs On-Premise SharePoint Hosting: 3 Considering Factors

Level of Expertise

If you don’t have a prior expertise in deploying SharePoint on an in-house server, then it is advisable to avoid it and select a reputed cloud hosting service provider. During deployment of SharePoint on an on-premise server, you may also come across several hidden costs that need a huge investment.

Operational and IT Upfront Cost

If you have sufficient IT budget and expertise, then you can opt for an on-premise hosting of SharePoint. Otherwise, if you are an SMB, then it is always wise to host SharePoint on a cloud server by hiring a SharePoint hosting service provider. After the deployment of SharePoint on an in-house server, there is a high IT upfront and maintenance cost that an SMB may find difficult to manage.


There are three different architecture for deploying or hosting SharePoint – Multi-tenant, Hybrid and Dedicated. And, the overall performance of SharePoint depends on the one that you select. With a hosting provider, you get prior-consultancy on which is the best-suited for your business.

The Way Forward

If you want to supercharge the performance of SharePoint, then it is recommended to host SharePoint on a cloud server. If you have any queries related to SharePoint hosting, or if you want to get Dedicated SharePoint Server Hosting Services 2016, then call us right now. Our cloud hosting experts are available 24/7 to assist you and guide to have robust and modern IT infrastructure.

Author Profile

Julia Gumm
Julia Gumm
Julia is Techarex Network’s Content Marketing Associate for Intuit products. She has worked as a B2B and Marketing Strategist for the last seven years, helping businesses with software implementation for Customer Service, CRM, and Email Marketing. Julia thrives in helping companies find the right software solution for their projects. Aside from his obvious passion for Marketing, Julia admits to being a foodie and travel enthusiast.

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