When it comes to hosting SharePoint on premises or moving it into the cloud, there is never one right answer. Companies need to understand every hosting option available to them and find the one that best fits their available resources and technical needs. In this article, we’re going to take a look at the available platforms and who might benefit most from each.

On Premises vs. The Cloud

Some businesses feel justified in keeping SharePoint on premises. Maximum control, unlimited customization and integration with internal line of business applications are the top reasons cited. However, the difficulties of maintaining qualified internal IT Staff, bearing upfront costs, planning for deployment arcs and scaling have made on premises hosting less attractive in the age of the cloud.

Multi-Tenant Cloud (Office 365, Other Per User/Per Site Offers)

A multi-tenant hosted model is like taking a train to work. The passengers share the cost of the train’s maintenance and the driver’s salary and receive the same service. With multi-tenant hosting, one SharePoint application is installed on a server farm, and all businesses share this SharePoint instance via a dedicated site.

The drawbacks? You can’t develop and integrate tailored, full-trust solutions that increase SharePoint capabilities and ROI by adding customized features that have been developed for your specific business, vertical or use case because this would affect all the other sites.

However, for SMBs that have a good view of their strategic orientation and project roadmap, and for whom basic, out of the box SharePoint features are good enough, a multi-tenant model is likely the most cost effective choice.

The problem is that these requirements rarely show up in the assessment of a SharePoint upgrade or migration to SharePoint 2013 (SP2013) because there are so many new features and possibilities to evaluate and stakeholders involved. Here are a few scenarios I’ve seen play out with clients who started out on a multi-tenant model without fully understanding its limitations:

  • Project management wants to keep things as simple as possible
  • Cost is a major driver for decisions and some desired features ultimately get cut
  • Businesses incorrectly assume the new App fabric in SP2013 will always facilitate developing tailored solutions if needed after initial deployment
  • Once SP2013 is deployed and widely adopted, another company wide and strategic project emerges where, for example, SharePoint needs to play a big role in Search or BI capabilities

IaaS (Azure, AWS and Others)

Infrastructure-as-a-Service is a cloud service model exclusive to one organization and which, consequently, is far more capable in terms of features and integration. For organizations that have the internal expertise and resources to manage this platform, this is usually the best option.