Microsoft SharePoint is always in great demand by small and large companies that seek for a tool that can manage and store documents. SharePoint has been developed since 2000 from on-premise versions to the online version, which is the SharePoint Online. You can enjoy SharePoint when you acquire its licenses, but it depends on which version you want to maximize and grow your business with.
SharePoint Online is licensed on a per-user bases, while SharePoint on-premises are licensed using a server or client access license (CAL) model. You can get SharePoint Online by subscribing to a standalone plan or any of the Office 365 plans. For on-premises, there are two types of CAL models that you have to acquire: SharePoint Standard CAL and SharePoint Enterprise CAL.
WATCH: SharePoint Online Plans and Benefits
The SharePoint Standard CAL provides main capabilities of the intranet, and these capabilities are the sites for all business websites, communities for collaboration, content, and search.
The SharePoint Enterprise CAL provides more than just sites, communities, content, and search. It allows users to maximize solutions like InfoPath Services, Power View, PerformancePoint Services, Excel Services, and more.
SharePoint Online Licenses
Companies can buy SharePoint Online through Office 365 subscription. SharePoint Online pricing is offered as among the services included in the Office 365 Business Premium which costs $12.50 per user. The web-based collaboration tool is also offered in Office 365 Business Essentials which costs $5.00 per user per. Both plans are annual commitment, which requires a user to sign up for a one-year subscription and pay month to month or the entire year at the time the user signed up.
Another way to buy SharePoint Online is to subscribe to either of these plans: SharePoint Online Plan 1, SharePoint Online Plan 2, and Office 365 Enterprise E3. When you buy SharePoint Online, you automatically pay for the SharePoint licensing. Take note that a person who wants to access Microsoft SharePoint Online must be assigned to an Office 365 plan or SharePoint Online Plan 1 or Plan 2.
The SharePoint Online Plan 1 is perfect for small and mid-sized businesses. Although this plan does not include Office applications, it has 1 terabyte of OneDrive storage per user. With this plan, users can already sync local copies of files and folders for offline viewing and editing on either Mac or PC.
Plan 1 allows users to use team sites in connecting with team members. This plan also provides smooth and easy navigation of team sites and intranet with SharePoint mobile applications for Android, iOS, and Windows or OneDrive mobile applications for Android, iOS, and Windows. You can get this plan for a monthly subscription of $5.00 per user.
The SharePoint Online Plan 2 has capabilities for the enterprise, and it already includes all the inclusions of the Plan 1. Plan 2 still has no Office applications, but it offers unlimited personal cloud storage. This plan can customize your search and results with enhanced features to display resources across Office 365.
Plan 2 allows user to seek for content in electronic format for litigation or audit scenarios. It also offers advanced data loss prevention (DLP) capabilities to determine, monitor, and protect all your sensitive data. Users of Plan 2 can enjoy the in-place holds to preserve content from deletion or edit. Plan 2 is worth $10.00 per user for a monthly subscription.
The Office 365 Enterprise E3 is perfect for businesses that need Office applications with advanced services for messaging, document sharing, compliance and management features for IT personnel. This plan is worth $20.00 per user and is paid every month. E3 already includes all the features and services of SharePoint Online Plan 2.
E3 already includes Outlook, Word, Excel, PowerPoint, Publisher, and Access. It also has services like Exchange, OneDrive, Skype for Business, SharePoint, Microsoft Teams, Yammer, and Delve.
The good thing about E3 is that it provides business-class email hosting with unlimited mailbox, customization of email domain address, and desktop and web versions of Outlook, Word, Excel, PowerPoint. User of E3 can also use Access and Publisher for PC.
One license of this plan already covers five PCs or Macs, five mobile phones, and five tablets per user. It also provides online video-conference meetings of up to 250 users. E3 also offers Teams and Yammer for chat messaging and social networking service, respectively.
SharePoint On-Premises Licenses
If you want to try the on-premise version of SharePoint, you still need to acquire a license. Intranet sites for on-premises require licenses using a server or client access license (CAL) model. These on-premise licenses are also applicable to the latest versions of SharePoint, which are the SharePoint 2013, 2016, and 2019.
If you want to use on-premises, you need to determine the number of users (internal and external) you plan to give access to your SharePoint intranet. Take note that internal users usually require a client access license with a certain amount of payment per user. The more users you plan to give access to your intranet will result in the increase of cost that you need to pay for the server licensing.
You also must assess the number of servers that you need. Remember that a server requires a SharePoint server license. A one-time use of license costs around thousands of dollars per server.
You also need to assess if you are going to need Enterprise features or just the Standard licensing. The Enterprise features will likely require you an additional Enterprise CALS for people using them.
Which Is Better: Online or On-Premise?
SharePoint Online is better for companies who want to build their own intranet sites immediately. The online version only takes minutes to set up when using an Office 365 credentials. This version is also beneficial if you want to improve collaboration with external users, business partners, or customers.
SharePoint on-premise is good for businesses who already have their own intranet infrastructure or chose to have one for security purposes. On-premise is also the best option for companies who don’t have a higher bandwidth and must retain programs that are already implemented or deployed deeply into their infrastructure.
Organizations prefer using SharePoint because of its document and storage management. If you want to know how we at Data Outsource build intranet sites for our clients in Canada and the United States, you may contact us here or give us a call at (403) 629-7272. We hope we helped you decide on whether which version to use when it comes to SharePoint licensing.
We would love to hear from you about your SharePoint licensing experiences. Did the prices go up this year? Let us know in the comments section below. Don’t forget to share this blog on social media.