Sharepoint: I want to compare on-prem vs cloud cost
Here is a clear real-world cost comparison 👍
Typical pricing:
About AU $7.50 per user / month for standalone SharePoint plan
Or ~$5–$20 / user / month depending on Microsoft 365 plan
~$10/user/month → $1,000/month
→ $12,000/year
→ $36,000 over 3 years
✅ No hardware
✅ No server
maintenance
✅ Updates included
Cloud cost is predictable subscription.
Licensing model = Server + CAL
Typical ballpark:
Server licence ≈ ~$7,000+
CAL ≈ ~$100–$200 per user
SQL Server ≈ ~$3,500+
Hardware ≈ $5,000–$20,000
Realistic deployment:
Licences + infra total → $20k–$50k upfront
Then add:
IT staff time
backups
patching
power
cooling
Cloud |
On-prem |
|
|---|---|---|
Upfront cost |
⭐ very low |
💀 high |
Monthly cost |
steady |
low |
Maintenance |
Microsoft |
You |
Customisation |
limited |
full |
Control |
less |
full |
Long-term cost |
can exceed on-prem |
cheaper if very long life |
Small org → Cloud almost always cheaper
Large org (500+ users) → on-prem can win long-term
Heavy customisation / compliance → on-prem preferred
Short-term deployment → cloud massively easier
Cloud cheaper for first 3–5 years
On-prem cheaper after ~6–8
years
(if infra already
exists)
If you want, tell me:
👉 number of users
👉 storage
size
👉 uptime requirement
👉 do you already have
servers
I can give you a much more realistic cost model (like enterprise architects do) 👍