For many years, organizations were only using SharePoint as an on-premise platform only. Finally, in 2011, Microsoft released Office 365 and SharePoint Online. As SharePoint Online has become more trusted, a growing number of organizations are making the move to the cloud. According to Teper, over 40% of all SharePoint users have SharePoint Online, which shows that yes, many business owners are making the move to the cloud, but many are still using SharePoint On-premises.
So, how do you know if your organization should make the move to the cloud? This decision will be based on your business objectives and on your company goals. Below, we’ll break down the differences between storing your data on a physical server or on the cloud.
Key Characteristics of SharePoint On-Premises
While SharePoint Online can be considered as the offspring of SharePoint On-Premises, these two platforms have several differences. In short, SharePoint online has better collaboration and storage abilities which ultimately allows for increased productivity among staff.

Key Characteristics of SharePoint Online
While SharePoint Online can be considered as the offspring of SharePoint On-Premises, these two platforms have several differences. In short, SharePoint online has better collaboration and storage abilities which ultimately allows for increased productivity among staff.
Pros and Cons of SharePoint Online vs SharePoint On-Premises
Consider your resources.
In order to run SharePoint 2016, you will have to use a physical server to house your company’s data. Additionally, you will have to rely on your IT team or additional staff to maintain and run these physical components which can get damaged. When using the cloud, you can access SharePoint anytime, anywhere and your staff requirements will be reduced because the physical components are in a virtual space.

Data Storage and Security.
SharePoint Online allows you to upload and share your files with the colleagues of your choosing. This eliminates the risk of someone not accessing a file on your desktop and reduces storage space. Despite the benefits of housing information in one centralized hub on SharePoint online, we understand that you want to keep your data secure. If your company deals with highly sensitive information daily, SharePoint on-premises may be a good route. This is one of the strongest use-cases for still maintaining an in-house server for all your data. The cloud is not relevant for all companies as well-maintained physical servers are simply more secure.

Running Updates.
With SharePoint on-Premises, you will need to rely on your IT team to ensure it is running the latest version and running smoothly. Although this may take up additional resources, the updates that occur will be shorter as they will be taken care of regularly. SharePoint Online will also ensure regular updates, however your company may experience some downtown periodically.

In Conclusion
Depending on your business needs, such as your budget, security requirements and staffing resources, one platform may suite your business over the other. Whether you choose SharePoint Online or SharePoint On-Premises, Microsoft is committed to ensuring you have a user-friendly platform.
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