Complete Guide to SharePoint Cost and How It Affects Small & Medium Businesses (SMBs)

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SharePoint is a popular content management system that enables organizations to manage their documents, workflows, and collaboration with ease. It offers a range of features and functionality that makes it an ideal choice for small and medium businesses (SMBs). However, one of the most critical factors to consider when choosing SharePoint is the cost. In this article, we will provide a complete guide to SharePoint cost and how it affects small and medium businesses.

SharePoint Cost

SharePoint cost varies depending on the version, deployment option, and licensing model. It is essential to understand these factors to estimate the cost accurately.

Versions of SharePoint

SharePoint comes in two versions: SharePoint Online and SharePoint Server. SharePoint Online is a cloud-based version that is hosted on Microsoft servers. It offers a subscription-based licensing model, which means you pay a monthly or yearly fee for using the software. SharePoint Server, on the other hand, is an on-premises version that is installed on your own servers. It offers a perpetual licensing model, which means you pay a one-time fee to use the software.

Deployment Options

SharePoint Online offers a fully managed cloud-based deployment, which means Microsoft handles all the infrastructure, maintenance, and upgrades. It is an ideal option for SMBs that don’t want to deal with the complexities of server management. SharePoint Server, on the other hand, offers various deployment options, including on-premises, hybrid, and cloud-based. On-premises deployment requires you to manage your own servers, while hybrid deployment allows you to integrate SharePoint Server with SharePoint Online.

Licensing Models

SharePoint Online offers several licensing models, including Microsoft 365 Business Basic, Microsoft 365 Business Standard, and Microsoft 365 Business Premium. These licensing models offer different features and functionality, and their prices vary accordingly. Microsoft 365 Business Basic is the most affordable option, while Microsoft 365 Business Premium is the most expensive option.

SharePoint Server offers two licensing models: Standard and Enterprise. The Standard edition offers basic features such as document management, content management, and collaboration. The Enterprise edition offers advanced features such as business intelligence, search, and eDiscovery. The price of these editions varies depending on the number of users and the deployment option.

Read also → How much do SharePoint licenses cost?

Factors Affecting SharePoint Cost

Several factors can affect SharePoint costs for SMBs, including the following:

  • Number of Users: The number of users is a critical factor that affects SharePoint’s cost. SharePoint Online offers a per-user licensing model, which means you pay for each user that accesses the software. The more users you have, the higher the cost. SharePoint Server offers a server-based licensing model, which means you pay for the number of servers you install the software on.
  • Features & Functionality: SharePoint offers a range of features and functionality, and each feature may have a different cost. For example, SharePoint Online offers advanced features such as PowerApps and Power Automate, which may require an additional fee. SharePoint Server offers add-ons such as Project Server and Visio Services, which may also require an additional fee.
  • Deployment Option: The deployment option can also affect SharePoint’s cost. SharePoint Online offers a subscription-based licensing model, which means you pay a monthly or yearly fee. On the other hand, SharePoint Server offers a perpetual licensing model, which means you pay a one-time fee. The cost of on-premises deployment may be higher due to server management and infrastructure costs.
  • Third-Party Tools: Third-party tools and add-ons can enhance SharePoint functionality and improve productivity. However, they may also add to the overall cost. SMBs should consider the cost of third-party tools when estimating the total cost of SharePoint.

 

How does SharePoint Cost Affect SMBs?

SharePoint cost can have a significant impact on SMBs, especially those with limited budgets. The following are some of the ways SharePoint cost can affect SMBs:

  • Affordability: SMBs may find SharePoint Online more affordable than SharePoint Server due to its subscription-based licensing model. However, SMBs that require advanced features may need to opt for SharePoint Server, which can be more expensive.
  • Scalability: SMBs may need to consider the scalability of SharePoint when estimating the cost. As their business grows, the number of users accessing SharePoint may increase, which can add to the overall cost.
  • Return on Investment: SMBs should also consider the return on investment (ROI) when estimating SharePoint cost. SharePoint can improve collaboration, productivity, and efficiency, which can result in long-term cost savings. However, SMBs may need to invest in training and support to maximize the ROI.
  • Cost Management: SMBs should also consider cost management strategies to reduce SharePoint cost. This may include optimizing the number of users, choosing the right licensing model, and leveraging third-party tools.
  • Competitiveness: SMBs that cannot afford SharePoint may be at a disadvantage compared to their competitors. SharePoint offers a range of features that can improve business operations, and SMBs that cannot afford it may struggle to keep up.

 

Conclusion

SharePoint is an excellent content management system that offers a range of features and functionality ideal for SMBs. However, SMBs should consider the cost when choosing SharePoint. The cost can vary depending on the version, deployment option, and licensing model. SMBs should also consider factors such as the number of users, features and functionality, and third-party tools when estimating the cost. While SharePoint’s cost can be a challenge for SMBs, it is essential to consider the ROI and competitiveness that SharePoint can provide. With careful planning and cost management, SMBs can leverage SharePoint to improve collaboration, productivity, and efficiency. Contact us today to learn more about our Microsoft SharePoint services.