SharePoint

SharePoint Online vs Office 365: Differences and Benefits

  Updated 24 Jan 2025

Transforming Healthcare

IT modernization is now reshaping companies across the globe, with more than 91% adopting cloud solutions. Since organizations rely on collaborative tools more often, the SharePoint Online v/s Office 365 debate is ongoing. Potential users must have adequate knowledge about them to determine what option is the most suitable for them. As a premier SharePoint Development Company at Q3 Technologies, we assist organizations in realizing their full potential using these advanced tools.

It has been proven that 85% of large enterprises of Fortune 500 organizations will adopt SharePoint online for their digital transformation goals. Many organizations can prevent spending up to $2m a year on infrastructure by migrating to SharePoint Online. Our advisors who use Office 365 reveal a 20% increase in productivity due to enhancements in the communication of the products.

This blog discusses the differences between SharePoint Online and Office 365. It details the value that will assist any organization that aims to enhance communications and improve work performance. I also collect and contrast the facets and discourse on how Q3 Technology can help organizations gain high investment returns.

What is SharePoint?

SharePoint is a Microsoft product, a high-performance software solution aimed at document management and collaboration in content creation and intranet tools. SharePoint comes in two versions: SharePoint Online – a cloud-based software as a service platform, and SharePoint On-Premise – a locally installed server software.

Everyone knows it is a part of the Microsoft bundle; nevertheless, companies ponder whether SharePoint is included in Office 365. The answer is yes. SharePoint Online is a crucial part of Office 365, enabling modern enterprises with strong features. SharePoint is the most popular application in knowledge management, and more than 85% of corporations on the Fortune 500 list use the application for document management. Research shows that organizations that implemented SharePoint Online and are using it saw an average, relative increase in ROI, averaging 162% within the first year.

What is Office 365?

Office 365, now officially referred to as Microsoft 365, is a subscription-based suite of productivity tools developed by Microsoft. It is designed to help individuals and organizations collaborate, communicate, and perform various tasks seamlessly in a digital environment. Unlike traditional versions of Microsoft Office, Office 365 operates primarily on the cloud, enabling users to access their tools and files from any device with an internet connection.

Common Misconceptions

1. Is Microsoft 365 SharePoint the Same as Microsoft 365 Office?

They are related but not the same, since the training can form part of the staff costs without necessarily being the primary driver of them. Microsoft 365 Office includes a series of applications, including SharePoint Online. Nevertheless, SharePoint Online is strictly designed for document control and teamwork.

2. Is SharePoint Online SaaS Reliable?

Yes. Microsoft’s technologically reinforced SharePoint Online provides businesses with an authentic, reliable, and secure environment.

3. Is SharePoint Part of Office 365?

SharePoint Online comes as a service in the Microsoft Office 365 package and easily connects with applications such as Microsoft Teams, OneDrive, and Power Automate. Where SharePoint On-Premise needs infrastructure in the business area, SharePoint Online provides flexibility, expandability, and web access, which makes SharePoint Online a preferred option for businesses migrating to an innovative Office 365 platform.

Read Our Case Study: Fueling Organizational Efficiency with Power Apps for one of India’s Largest Electricity Distribution Company

SharePoint Online vs. SharePoint On-Premise: Key Differences

The main difference between the two versions is the deployment environment, as the following comparison of the two primary tools demonstrates.

SharePoint On-Premise

  1. Infrastructure: This option demands unique on-site servers, and the control is shifted into your hands and run by your organization’s staff.
  2. Customization: Allows many customization options to suit particular organizational requirements and supports integration.
  3. Costs: Demands more investment at the beginning of the planning to acquire the physical machines and consistently spending money on maintaining Information Technologies.
  4. Updates: It requires the frequent downloading and installation of updates by the organization’s IT department.

SharePoint Online

  1. Infrastructure: Runs on Microsoft cloud servers and does not require local hardware such as on-premise devices.
  2. Customization: Comparatively higher but still not a lot and is slowly improving as there are advancements in flexibility through modern data handling tools on-premise.
  3. Costs: This work has further understood the issues behind subscription-based prices mainly because it is more financially manageable than capital expenditure for most organizations.
  4. Updates: Supplied with Microsoft’s features, improvements, and bug fixes and updated instantly.

Choosing between SharePoint Online vs SharePoint On-Premise depends on factors like scalability, budget, and organizational needs. However, cloud adoption trends indicate that SharePoint Online SaaS is rapidly becoming the go-to choice.

SharePoint Online vs Office 365: Understanding the Distinction

While SharePoint Online is a service within Office 365, the latter is a comprehensive suite offering various productivity tools. Here’s a breakdown of how they differ:

Feature SharePoint Online Office 365
Core Functionality Document management and collaboration Productivity suite with apps like Word, Excel, and SharePoint
Integration Built into Office 365 Includes SharePoint Online and other apps
Scalability Focused on intranet and extranet Enterprise-wide productivity solution
Target Audience Collaboration-centric teams Organizations needing diverse tools

Benefits of SharePoint Online

1. Enhanced Collaboration

SharePoint Online makes Real-time collaboration possible because teams can work on the same document without fragmenting it. Sharing and commenting on documents is now more manageable since it introduces options such as revision history and comments.

2. Cost Efficiency

Due to using the Microsoft infrastructure located outside an organization, the organization is spared the expenses of purchasing the physical servers. Also, it has to spend less on IT maintenance to realize tremendous savings.

3. Security

SharePoint Online is developed with enhanced security, ensuring data protection by following applicable international policies such as GDPR and ISO certifications. Besides that, Microsoft has more specific protections from threats and constant updates to boost safety levels.

4. Scalability

The growing businesses need to be satisfied because Sharepoint Online has provisions for storage and resources. A critical feature of organizations is the ability to modify the subscriptions in line with changes in users and workload.

5. Seamless Integration

For seamless working and data sharing, one can also work closely with other Microsoft 365 tools, such as Power BI, Teams, and OneDrive.

Also Read: SharePoint vs. OneDrive: A Comprehensive Guide to Choosing the Right Solution

Benefits of Office 365

1. Comprehensive Suite

Office 365 is a package of the most used applications, such as Word, Excel, PowerPoint, Teams, and SharePoint Online, all in one platform to enhance workflow and cooperation.

2. Mobility

Office 365 customers can access their workspaces from any device connected to the internet. This concept will increase productivity and access to certain information not bound to the physical workplace or the type of gadget one uses.

3. Subscription Model

One of the most significant advantages of using Office 365 is its scalable price plans: flexible monthly or annual charges to fit companies of all sizes.

4. Automation:

Power Automate and SharePoint are also used with Office 365 to support and enrich workflow activities. Companies and self-employed people can avoid the repetition of tasks and lower mistakes.

What is CodeTwo Office 365 Migration?

CodeTwo offers practical tools for migration to Office 365 services to guarantee successful cloud adoption. Collaborating with Q3 Technologies guarantees that such migrations are completed seamlessly without the loss of data or even downtime, improving the service’s efficiency.

How Q3 Technologies Can Help in Choosing the Best Innovative Technologies

Q3 has been rated as the leading SharePoint Development Company that focuses on assisting organizations in realizing the potential of using SharePoint and Office 365 solutions. Here’s why you should hire SharePoint developers from us:

  1. Specialization: Customization Q3 Technologies’ SharePoint developers enhance the organization by developing SharePoint solutions that suit its business requirements to the greatest extent.
  2. Expertise: Based on the company’s several years of experience, Q3 Technologies has been helping global businesses implement unique SharePoint and Office 365 solutions.
  3. ROI-Driven Approach: Q3 Technologies targets the achievement of tangible business value and a better rate of ROI on technology expenditures by its clients.

How to Hire SharePoint Developers from Q3 Technologies

  1. Consultation: Feel free to let us know your needs for further discussion among our team.
  2. Customized Solutions: Move up to second-level services and get expert proposals that will be helpful for your particular business.
  3. Dedicated Support: Get assured support and upkeep services to help you get the best out of it if you opt for one of these.

ROI of SharePoint Online and Office 364

Cost savings and faster development cycles on transitions to SharePoint Online and Office 365 are benefits that help enterprises increase their ROI. In the aspect of enabling a cut on infrastructure costs and enhancing organizational operation productivity and collaboration, these platforms significantly boost organizations.

For example:

Reduced Downtime: This means minimal interference when updates are done automatically.

Increased Productivity: Teams benefit from easy access to documents and efficient processes within a team.

Enhanced Decision-Making: Visual report through Power BI Visualization and SharePoint Analytics Dashboard.

Conclusion

Choosing between SharePoint Online vs Office 365 depends on your business goals. While Office 365 offers a holistic productivity suite, SharePoint Online excels in fostering collaboration and efficient document management.

At Q3 Technologies, all services are specific and cater to the client’s needs in a particular quarter, in this case, the third quarter. We can assist you if you select SharePoint Online SaaS environment or need a CodeTwo Office 365 migration.

Are you ready to radically change your business with innovative IT solutions? Call Q3 Technologies right now and apply the full potential of bright Office 365 tools.

FAQs

What is the primary difference between SharePoint Online and Office 365?

SharePoint Online is a cloud-based service part of the Office 365 platform that supports collaboration with document management and business intranet solutions. At the same time, Office 365 is the overall suite of Microsoft applications, including Word, Excel, Microsoft Teams, Outlook, and PWA.

Can SharePoint Online be used without Office 365?

No, it is not a standalone product; it is part of the Office 365 productivity suite of applications. It works well with other Office 365 applications to make it easier to accomplish work.

What are the key benefits of SharePoint Online compared to its on-premises version?

Compared to the on-premise version, SharePoint Online has such benefits as cloud availability, no requirement to update it manually, lower infrastructure costs, and better scaling opportunities.

How does SharePoint Online enhance collaboration within Office 365?

Microsoft SharePoint Online is an extension of offline apps such as Microsoft Teams, OneDrive, and Outlook, enabling users to collaborate in real time, share documents, and communicate directly from the applications.

What are the security features of SharePoint Online within Office 365?

Security features of SharePoint Online include MFA, AES industry standard encryption, compliance with Office 365 requirements, and threat intelligence protection.

How does SharePoint Online support remote work in Office 365?

Users can access their documents, their team’s repositories, or their project management tools from anywhere in the world if they have an internet connection, perfect for usage in a remote work setting.

Can SharePoint Online be customized for specific business needs within Office 365

Yes, SharePoint Online has rich customization possibilities related to site designs, out-of-the-box workflows, and integration opportunities with other apps, and it can be successfully adjusted to the needs of the business.

What is the cost difference between SharePoint Online and Office 365?

SharePoint Online is available with some Office 365 plans like Business Premium and Enterprise; its cost is included in the overall Office 365 plans.

How does document management differ in SharePoint Online compared to other Office 365 tools?

SharePoint Online specializes in centralized document storage, version control, metadata management, and permission settings, making it more robust than tools like OneDrive for document management.

Why should businesses choose SharePoint Online as part of their Office 365 subscription?

Businesses benefit from SharePoint Online’s seamless integration with Office 365, scalability, advanced collaboration tools, and cloud-based infrastructure, which together improve productivity and operational efficiency.

Table of content
  • What is SharePoint?
  • What is Office 365?
  • Common Misconceptions
  • SharePoint Online vs. SharePoint On-Premise: Key Differences
  • SharePoint Online vs Office 365: Understanding the Distinction
  • Benefits of SharePoint Online
  • Benefits of Office 365
  • What is CodeTwo Office 365 Migration?
  • How Q3 Technologies Can Help in Choosing the Best Innovative Technologies
  • How to Hire SharePoint Developers from Q3 Technologies
  • ROI of SharePoint Online and Office 364
  • FAQs