An Introduction to Microsoft SharePoint Server (On-Premises): how it is licensed, works and all you need to know

What is Microsoft SharePoint? 

Microsoft SharePoint is an environment in which files and knowledge are stored, shared and where users can collaborate on these files. It also serves as a platform for users to communicate with each other and exchange work related content. Microsoft SharePoint helps organizations increase their business process efficiency and productivity. 

Microsoft SharePoint server (on-premises) is the counterpart of Microsoft SharePoint online. The Microsoft SharePoint Server is run and deployed on your own organization’s servers whiles Microsoft SharePoint Online is run on the “Microsoft Cloud “. On-Premises means, the Microsoft SharePoint application is installed on servers that are maintained by the user.  

Due to the many news items about Office 365 or SharePoint Online, you would almost forget that there are still many companies that use On-Premises SharePoint servers.  

This is because Microsoft in recent times is trying to drive many existing and would-be clients to the cloud hence there could be incentives available in that regard if you want to consider such movement. 

What are the advantages of Microsoft SharePoint On-Premises over SharePoint Online? 

The difference between the Microsoft SharePoint On-Premises and SharePoint Online is that with On-Premises the responsibility for management, updates and security lies entirely with the owner. On-Premises has the advantage that you, as the owner, have influence on the design and maintenance of the servers.  

In addition, with On-Premises, users are able to customize their intranet and other enterprise applications to meet their organization’s specific needs. You can choose whether updates are performed now or at a later time. This can be an advantage because certain features that may be used cannot simply be modified or removed. 

Microsoft SharePoint On-Premises allows room for a greater level of scalability compared to SharePoint Online. This means that organizations have the flexibility to add more storage or memory as needed without having to purchase additional licenses.  

Finally, organizations can have greater control over their data with an On-Premises solution since they store the data on their own servers and manage security protocols themselves.  

With SharePoint Online, organizations may not have access to all the features they need or feel comfortable with the amount of control they have over their data. 

Who is Microsoft SharePoint On-Premises for? 

Microsoft SharePoint On-Premises is designed for organizations that need to store, collaborate and manage content in a secure, centralized location. It allows businesses to create websites, document libraries, lists, calendars and surveys quickly and efficiently. SharePoint On-Premises is beneficial for organizations who are looking for a dedicated server that provides the highest level of security and control over their data.  

It can be used to securely store documents such as contracts, customer records and internal communications. Additionally, it provides users with an organized system to manage projects, tasks and workflow processes. With SharePoint On-Premises, companies can create customizable business solutions while maintaining control over their data at all times due to its onsite hosting capabilities. 

In principle, Microsoft SharePoint On-Premises is intended for every organization. The advantage of Microsoft SharePoint On-Premise is that certain company sensitive information can simply be put on SharePoint because it concerns an internal network and not cloud storage. This makes SharePoint not only interesting for business customers, but also for government institutions and hospitals, for example. 

What is Microsoft SharePoint Server and which versions are available? 

Microsoft SharePoint On-line just like SharePoint On-Premise (Server) are two different products that serve the same purpose. Microsoft SharePoint On-line is a cloud platform that runs on Microsoft’s Azure cloud service. It allows businesses to have access to the latest versions of their documents and collaboration tools such as Office 365, OneDrive for Business, and Outlook Web App. 

There are currently 3 different versions of Microsoft SharePoint Server: 

  • SharePoint Server 2019 
  • SharePoint Server 2016 
  • SharePoint Server 2013

SharePoint Server 2019 offers improvements such as improved hybrid capabilities, enhanced mobile access and app launcher experiences, new compliance tools, better analytics experiences and insights across your data sources, improved user customization with modern team sites and pages, plus the ability to manage metadata-driven processes.  

SharePoint Server 2016 provides many new features designed to improve collaboration and communication within teams as well as across an organization.  

SharePoint Server 2013 includes a number of improvements over previous versions including site templates for easy creation of project sites or team sites with minimal effort and cost; customizable web parts for creating dynamic content and better mobile device support.  

How do I buy Microsoft SharePoint On-Premises (Server)? 

There are various contract forms possible when it comes to Microsoft products. A number of options for the business customer are: 

  • Enterprise (Subscription) Agreement 
  • MPSA 
  • Open (Subscription) Value 
  • Open License 
  • CSP

It is important to choose a contract form that best suits the size and needs of your organization. You can also decide whether you prefer to rent or buy used licenses. 

In addition to needing a license for each running instance of SharePoint Server, you also need a Client Access License (CAL) for each device. There are two options: The Standard CAL with the basic options or the Enterprise CAL with additional functionalities. 

How much does Microsoft SharePoint On-Premises (Server) cost? 

The costs of SharePoint Server licenses depend on which version you use and the number of license you need. If you go for SharePoint in CSP / NCE the Microsoft price will be €4.20 excluding VAT per user.  You can save on this amount by negotiation with your partner. A third party negotiation expert like Q-Advise can also help you to get the best price for your SharePoint license.     

The price for SharePoint Server 2019 is € 8.006.00 excluding VAT in Open contract. When you are a bigger organization and you go for an Enterprise Agreement or MPSA contract you get better prices. Don’t think the offer you get from your Microsoft partner or Microsoft is a final offer. There is always room to negotiate better prices. The Microsoft negotiators of Q-Advise can help you to get you the best deal.  

Microsoft SharePoint On-Premises licenses purchase will require you to contact a Microsoft reseller or you can use an independent party for advice and scenarios. An independent party will provide you with the pricing options and any additional resources or guidance for purchasing these licenses without any intention to sell software.   

Microsoft SharePoint Server licenses are priced on an annual subscription basis. Depending on the size of an organization, the type of deployment and level of customization. Prices come in ranges per year for version specific and different plans up to the enterprise-level.  

Also the exact pricing model varies depending on the number of users and server farms needed to support the implementation. Larger organizations with greater needs have higher licensing costs than smaller organizations with fewer requirements. Licensing options vary based on whether organizations are using cloud-based or on-premises SharePoint deployments. Cloud-based solutions usually cost less as they are easier to manage and maintain over time. 

Save with cheap second-hand Microsoft SharePoint Server (On-Premises) licenses

At Q-Advise we specialize in independent Microsoft licensing advice. We also specialize in helping organizations with buying and selling second-hand or used Microsoft SharePoint products. Our Microsoft licensing specialists advise you on Microsoft contracts, licenses and products even if you want to buy used SharePoint licenses. Because we are an independent party, we can provide you with transparent and honest advice. This way we prevent you from buying too many and expensive licenses unnecessarily. 

Would you like to know more about used Microsoft SharePoint licenses or about Microsoft Licenses? Then contact our team of experts now!  

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