SharePoint Online versus On-Premise (Costs)

Recently, we held a seminar for our customers helping them better understand the costs related to either SharePoint Online (via o365), or SharePoint On-Premise.  As such, we came up with this 50-user costing senario, and broke it back down into a “monthly per user, per month” charge.

I think it gives our customers a good understanding of the costs involved, and the potential savings, when they move to Microsoft’s Cloud offering.  The slide below is our 50-user comparison.  The pricing model assumes you do not already “own” On-Premise licenses.

As the slide above illustrates, on average we see savings for our clients of around 40% when implementing SharePoint in the cloud (versus Local).  What this calculation doesn’t include is the additional patching/system updates that a typical Administrator would have to handle for Local installation.

Pretty strong statement from Microsoft – basically, they are giving you the hardware for free, and charging you the software costs monthly (instead of being hit with a larger up-front cost).

In my next series of posts, I will be in focusing how we are leveraging SharePoint to help our customers manage vendors, contracts, work orders, and other “operational-based” workflow – by pulling it out of email, and tracking it in SharePoint.  Stay tuned.