SharePoint 2013 On Premise vs SharePoint Online
Comparison

We compare and analyze important SharePoint features side by side
to show the differences that make them better or worse in the following categories:

Collaboration   |   Security   |   Document Management and Search
Performance   |   Office 365 Only Collaboration Features
Business Intelligence   |   Management   |   Application Development

Collaboration
SharePoint 2013
On Premise
 
SharePoint Office 365
Online Enterprise
Document libraries
Works great
 
Works great
Co-authoring
On Office 365, real time co-authoring of Word documents is possible. On premise co-authoring is not real time yet. We anticipate that SharePoint 2016 should bring all the features available online to on premise.
On premise co-authoring is not real time yet
 
Works great
Mobile apps
Office mobile for Android and iOS focus on folder based browsing of sites and lists as well as editing Word, Excel, PowerPoint, and OneNote documents. Currently there is no support for metadata, web parts, and many other important SharePoint features.
No support for metadata, web parts, and many other important SharePoint features
 
No support for metadata, web parts, and many other important SharePoint features
Custom lists
Small to medium lists function the same. Once the list gets past list view threshold of 5000 items, performance and control tend to be better on premise vs Office 365.
Works great
 
Works great
Calendars
Works great
 
Works great
Tasks
On Office 365, Outlook tasks app aggregates SharePoint tasks assigned to a user. SharePoint tasks are also visible in Outlook client. On premise. my site tasks interface is still the default aggregation method.
Needs improvement
 
Works great
Navigation
On premise with a bit of PowerShell and CSS, navigation can be efficient. Online, App Launcher creates extra clicks for the user to move between different parts of Office 365.
Works great
 
Extra click for user to move between different parts.
Security
 
Active directory, user reporting, data loss prevention
Microsoft has invested heavily into audit capabilities of Azure Active Directory used by Office 365 user management. Although Microsoft might not deserve a green yet on Office 365, the reporting capabilities
Needs improvement
 
Works great
SharePoint groups and permissions reports
No significant differences. To get good group and user reports, requires custom development or third party applications.
Needs improvement
 
Needs improvement
External sharing
Office 365 makes sharing content outside of organization seamless and controlled. External users can login using their Microsoft account or register their email address as Microsoft account. Control exists at tenant and site collection level. Internal users can also login (via sync with local Active Directory).
Needs improvement
 
Works great
Document Management and Search
 
Site columns, managed metadata, and content types
Office 365 predefines the location of content type hub and limits the organization to one taxonomy store.
Works great
 
Works great
Search
Office 365 predefines the location of search center. Content sources and craws are handled automatically. Using custom refines is possible with placeholder managed properties.
Works great
 
Works great
Workflows
Availability of two workflow platforms confuses designers. As there are no out box 2013 workflow templates, only those proficient in SharePoint Designer or Visual Studio can build new workflows. Keep in mind that there will be no SharePoint Designer 2016.
Needs improvement
 
Needs improvement
Performance
 
Performance
When installed correctly with proper warm up scripts SharePoint 2013 is very fast with faster page loads than SharePoint Online. On premise is better if the most of the users are close to the servers.
Better if the most of the users are close to the servers
 
Needs improvement
Office 365 Only Collaboration Features
 
Delve
Delve search experience is efficient and takes into account office graph relationships. Although it has a lot of potential, currently it does not support metadata and search refiners. There is no integration with search center.
N/A  
Needs improvement
Outlook Groups
Microsoft provides an alternative to a team site. Each group has a message thread and a calendar in Outlook as well as a document library in separate SharePoint site collection. Additionally messages to the group can come from a number of external connectos to services such as GitHub or MailChimp
N/A  
Works great
Video Portal
The video portal experience tries to mimic YouTube. The back end is Azure media services and Azure blob storage so performance is great. Integration into current sites is not.
N/A  
Needs improvement
Business Intelligence
 
Excel data modeling, PowerPivot, Power View
Works great
 
Works great
External connections data refresh
On Office 365, data refresh works for limited sources (improving all the time). Connections to on premise sources require setup through PowerBI admin center including installation of gateway software. .
Works great
 
Needs improvement
Power BI Desktop
Client only  
Works great
Management
 
Moving sites and lists
Office 365 provides no PowerShell support to move sites or large lists between site collections. Administrators have to rely on third party tools such as ShareGate or Metalogix. Note: even with third party moving large document libraries takes a considerable amount of time if successful.
Works great
 
Needs improvement
General PowerShell access
Although Azure AD and Azure offer a large amount of PowerShell cmdlets, SharePoint Online does not. For example, on premise, using PowerShell one can find all the sites where an app is installed; same cmdlets are not available online.
Works great
 
Needs improvement
Migration
Migrating large amounts of data to Office 365 takes a lot time even with third party tools. In general large document libraries are not easy to migrate to Office 365 or in Office 365.
Works great
 
Needs improvement
Application Development
 
SharePoint Hosted Apps
SharePoint hosted apps are simplest to get started with both on premise and online. However, the deployed code is stored in multiple SharePoint app webs (unless deployed with tenant scope). All updates require app version increase and the code is limited to JavaScript
Don't use
 
Don't use
Provider Hosted Apps
SharePoint provider hosted apps are the best option for long term development in SharePoint. Code (C#, JavaScript, or any other language with REST API) is in one place outside of SharePoint. Most updates do not require version update. Development process is straightforward with local server in Visual Studio, and web deploy to staging (or production). Full git support. On premise, setup of provider hosted environment should be more automated by Microsoft (hence needs improvement).
Needs improvement
 
Works great
Windows Azure
Azure web apps, SQL databases, Azure AD, Blog storage, and No SQL databases are a simple way to build great applications that can scale. Full integration into Visual Studio 2013 and 2015 provides a better alternative to AWS or Google. Visual Studio online provides support for git, agile deployment, and build management. Azure lacks clear guidance on dev ops, but the community is developing it.
Works great
 
Works great
Deploying JavaScript in document libraries
SharePoint provider hosted apps are the best option for long term development in SharePoint. Code (C#, JavaScript, or any other language with REST API) is in one place outside of SharePoint. Most updates do not require version update. Development process is straightforward with local server in Visual Studio, and web deploy to staging (or production). Full git support. On premise, setup of provider hosted environment should be more automated by Microsoft (hence needs improvement).
Works great
 
Works great



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