SharePoint Online vs SharePoint Server

SharePoint Online vs SharePoint Server

SharePoint Online is the cloud version of SharePoint. It is hosted by Microsoft and is continuously updated. It is included in Microsoft 365.

SharePoint Server is the on-premises version. It is installed on your servers and managed by your IT team. Updates are made according to your schedule.

In 2026, Microsoft will invest only in SharePoint Online. SharePoint Server will receive security patches only, with no new features added.

SharePoint Online vs SharePoint Server: Comparison

| Feature | SharePoint Online | SharePoint Server | |---|---|---| | Hosting | Microsoft-managed cloud | Customer-managed on-premises | | Updates | Continuous; monthly feature releases | Annual feature packs; customer-controlled | | Microsoft Copilot | Yes | No | | SharePoint Premium (Syntex) | Yes | No | | Viva Connections | Yes | No | | Microsoft Purview | Full integration | Limited | | FedRAMP / HIPAA / SOC 2 | Native via Microsoft compliance | Customer must implement separately | | Custom development | SPFx (modern, supported) | Farm solutions (retiring) | | Storage | 25 TB/site + tenant pool | Limited by your hardware | | Disaster recovery | Microsoft-managed | Customer responsibility |

Key facts

• SharePoint Online is part of Microsoft 365 — pricing starts at $5/user/month (Plan 1) or $6/user/month (Business Basic).
• SharePoint Server Subscription Edition (SPSE) is the current on-premises release — annual subscription model.
• Microsoft Copilot, SharePoint Premium, Viva Connections, and Purview automation are Online-only features.
• Hub-spoke migrations see 60% faster content discovery and 40% fewer help desk tickets.
• EPC Group: Microsoft consulting since 1997, 6,500+ SharePoint implementations, core Microsoft Solutions Partner designations.

SharePoint Online Overview

SharePoint Online is the hosted version of SharePoint — part of the Microsoft 365 subscription. Microsoft manages the infrastructure, updates, and security.

• No servers to buy, maintain, or patch.
• New features delivered continuously — sometimes weekly.
• Microsoft 365 integration: Teams, OneDrive, Exchange, Power Platform, Copilot.
• Compliance: FedRAMP High (GCC High), HIPAA, SOC 2, GDPR — managed by Microsoft.
• AI features: Microsoft Copilot, SharePoint Premium, Viva Connections, and Microsoft Search Copilot integration.

SharePoint Server Overview

SharePoint Server is the on-premises version — installed and managed by your IT team. Microsoft provides software and patches; you manage everything else.

• You control the update schedule — no forced feature changes.
• Requires Windows Server, SQL Server, and SharePoint Server licenses plus hardware.
• Farm solutions and classic add-ins are supported (though retiring in Online).
• SharePoint Server Subscription Edition is the current version — older releases (2019, 2016, 2013) are in extended support or end of life.
• No AI features — Copilot, SharePoint Premium, and Viva Connections are Online-only.

Which Should You Choose?

For almost all organizations in 2026, SharePoint Online is the right choice.

Choose SharePoint Online if:

• You want AI features: Copilot, SharePoint Premium, or Viva Connections.
• You need regulated-industry compliance: HIPAA, FedRAMP, SOC 2, GDPR.
• You want to eliminate server infrastructure and patching overhead.
• You have remote workers who need reliable access from any device or location.
• You want continuous feature delivery rather than a scheduled update model.

Consider SharePoint Server only if:

• You have regulatory mandates that explicitly require on-premises data custody — read the regulation; most do not.
• You operate a classified government environment where GCC High certification does not yet meet your requirements.
• You have legacy custom code dependencies that would cost more to remediate than a 5-year cloud migration saves.

Migration: On-Premises to SharePoint Online

Most organizations migrate from SharePoint Server to SharePoint Online in six phases.

1. Assessment — inventory sites, customizations, workflows, and compliance requirements.
2. Content cleanup — remove ROT content (typically 30–40% of total volume) before migration.
3. Architecture design — map on-premises site collections to SharePoint Online hub-spoke structure.
4. Pilot migration — validate tools on 2–3 representative sites before full execution.
5. Wave-based migration — 5–10 TB per wave with user acceptance testing between waves.
6. Cutover and decommission — final sync, URL redirects, 30-day parallel run before retiring the on-premises farm.

Frequently Asked Questions

Should I choose SharePoint Online or SharePoint Server?

For almost all organizations in 2026, choose SharePoint Online. Microsoft invests exclusively in SharePoint Online — AI features, Purview governance, and Viva Connections are all Online-only.

SharePoint Server receives security patches only. The only exceptions are organizations with genuine on-premises data custody mandates or highly classified government environments.

What is the main difference between SharePoint Online and SharePoint Server?

SharePoint Online is hosted by Microsoft in the cloud and receives continuous feature updates. SharePoint Server is installed on your own servers and updated on your schedule.

Microsoft Copilot, SharePoint Premium, and Viva Connections are Online-only. SharePoint Server supports farm solutions and classic customizations that are retiring in the Online environment.

Can I migrate from SharePoint Server to SharePoint Online?

Yes, EPC Group has completed over 6,500 SharePoint migrations. The duration of each migration ranges from 4 to 16 weeks, depending on the amount of data.

For permission preservation, we recommend using:

• ShareGate
• AvePoint Migrator

Additionally, please note that workflows from SharePoint 2010 and 2013 must be rebuilt in Power Automate, as they cannot be migrated directly.

Is SharePoint Online HIPAA compliant?

Yes, Microsoft 365 is HIPAA-eligible under a Business Associate Agreement (BAA). It includes features that help meet HIPAA requirements:

• SharePoint Online with Microsoft Purview
• Sensitivity labels
• DLP policies
• Retention labels
• Audit logging

Configuration by an experienced consultant is required — the platform provides the tools but compliance requires proper design.

Schedule a SharePoint Consultation

Talk to a SharePoint architect about your Online vs. on-premises decision or migration project. Call (888) 381-9725 or request a 30-minute discovery call.