Jul 16, 2020
4 min read

What’s The Difference Between SharePoint And Office 365?

As a pioneer in the realm of workplace productivity software, Microsoft products are commonplace in organizations all over the world.  

Today we will discuss two of the most prominent offerings by the software giant, i.e., MS Office 365 and Microsoft SharePoint, and find out how to differentiate between the two. 


Office 365 vs. SharePoint – What’s The Difference?Intranet-Benefits-Organizations

Microsoft SharePoint
is an application that provides users with a virtual intranet network that can be used to access internal data such as sites, documents, and announcements. Having been around for more than 15 years, SharePoint allows workforces to collaborate and share information with their colleagues. 


Office 365, on the other hand, is a comprehensive application suite offered by Microsoft as part of its latest subscription-based models. Not only does it include a host of revamped legacy workplace applications (such as MS Office, Outlook, and even SharePoint), but it also features several new applications. 


However, it can be challenging to choose between Office 365 plans that include SharePoint Online or ones that don’t. This decision must be based on several variables, including the needs of your businesses and the expertise of your staff. 


Let’s understand the differences between the two so you can decide which suits your purpose better: 

  • Application Hosting and Data Storage


Microsoft SharePoint is legacy software that is installed on computer systems. On-premise storage allows you to have broader control over the software application. However, this mandates additional data storage and maintenance costs. 

Office 365 is an exclusively cloud-based application suite, so the SharePoint included in there is also cloud-based. This allows organizations to benefit from updated security patches and bug fixes in real-time without having to worry about increasing hardware or maintenance costs 

As a cloud-based alternative, that data is hosted on Microsoft serves, which further allows you to save on hosting costs. 


  • Security

As Microsoft’s flagship business model, Office 365 (SharePoint Online included) features state-of-the-art security parameters to protect against cybercrime. 

However, some organizations impose strict and multifaceted security requirements on sensitive data. In such cases, SharePoint can allow users to configure increased security protocols on their data.  

Basic Office 365 plans (without SharePoint Online) are better suited for organizations that require file-based storage, which allows for greater convenience. 

  • Collaboration

Intra-team and intra-employee collaborations are also a matter of concern when selecting between Office 365 and SharePoint. 

SharePoint’s interface allows for complex collaborations that may require customized workflows, personalized data types, and metadata.  


On the other hand, go for Office 365 for unsophisticated collaborations that aren’t content-intensive, as it features several new products such as Teams and OneDrive to facilitate workflow in such conditions. 


Simply put, SharePoint is a part of the all-inclusive Office 365 application suite offering. 

The core difference lies in specialization. SharePoint offers an intricate content management system that is better suited for complex collaborations. In contrast, Office 365 is better suited for smaller organizations that may not require such intricacy. 


Would you like to know more? Contact us at  hello@definityfirst.com  to know what’s better for your business! More information about our SharePoint Services click here!


Related post: 3 Reasons why Microsoft SharePoint is a good investment for your company.