Microsoft 365 SharePoint vs. Azure Files: What is the Best Cloud Storage Solution for Small Businesses

Microsoft 365 SharePoint: Collaboration and Productivity

What is SharePoint?

SharePoint is part of the Microsoft 365 suite and is built for team collaboration and document management. It’s perfect for businesses needing shared spaces to work on documents, manage projects, and communicate internally.

Key Features:

• Document Collaboration: Teams can work on documents in real-time, with multiple people editing Word, Excel, or PowerPoint files simultaneously.
• Intranet & Communication: SharePoint allows you to create internal websites to share updates and files with employees.
• Permissions & Security: You can control who can view or edit files, ensuring sensitive data stays secure.
• Microsoft 365 Integration: Seamlessly works with Teams, OneDrive, and Outlook for enhanced productivity.

UK Pricing:

SharePoint is included in Microsoft 365 business plans. These start at:

• £5.88/user per month (Business Basic)
• £12.36/user per month (Business Standard)
• £21.72/user per month (Business Premium)

Pros:

• Excellent for teams working on documents together.
• Full integration with Microsoft 365 apps.
• Built-in security and version control.

Cons:

• Might be too complex for businesses that only need basic file storage.

Azure Files: Simple and Scalable Cloud Storage

What is Azure Files?

Azure Files is a cloud storage service designed for businesses that need simple file storage. It’s highly scalable, flexible, and integrates well with existing on-premises servers through Azure File Sync.

Key Features:

• Simple File Sharing: Azure Files provides easy file access using standard file-sharing protocols (SMB and NFS).
• Integration with On-Premises Servers: Azure File Sync allows you to link your local servers to the cloud, providing the best of both worlds—fast local access to files with cloud scalability.
• Backup & Disaster Recovery: Built-in backup options ensure your files are safe, even in case of an outage.

Pricing:

• Azure Files charges based on the amount of storage you use:
• £0.048 per GB per month (Standard storage)
• £0.11 per GB per month (Premium storage)

For example, storing 100 GB will cost around £4.80/month for standard storage or £11/month for premium storage.

Pros:

• Great for simple, scalable cloud storage.
• Seamless integration with existing on-premises file servers.
• Predictable costs with pay-as-you-go pricing.

Cons:

• Lacks collaboration features.
• Costs may vary based on usage.

Integration with On-Premises Servers: SharePoint vs. Azure Files

If you have an existing server and want to combine it with cloud storage, the integration capabilities of Azure Files are a major advantage.

• Azure Files uses Azure File Sync, allowing you to link your on-premises file servers to the cloud. This means you can store frequently used files locally for fast access and push less-used files to the cloud. It’s perfect for businesses that want to keep some infrastructure on-site while expanding into the cloud.
• SharePoint, while primarily a cloud-based tool, does offer hybrid options with SharePoint Hybrid. However, its focus is more on collaboration and document management than on syncing with local file systems.

Which One Should Your Business Choose?

• Choose Microsoft 365 SharePoint if your team needs robust collaboration tools and document sharing. It’s perfect for businesses that want an all-in-one solution for managing documents, working together, and communicating.
• Choose Azure Files if you need simple, cost-effective storage with seamless integration with existing on-premises servers. Azure Files is ideal for businesses looking for a scalable storage solution that can grow with them over time.

Final Thoughts

If your business revolves around document collaboration, Microsoft 365 SharePoint offers the best value for UK small businesses due to its integration with the full Microsoft 365 suite. However, if you’re focused on straightforward storage, especially in a hybrid setup with on-premises servers, Azure Files is the way to go. It’s cost-effective, scalable, and flexible, making it ideal for businesses with expanding storage needs. One key consideration is many small businesses are likely to have some type of 365 Business Plan. Therefore, SharePoint Online already provides a powerful and cost-effective cloud storage solution. Opting for Azure Files on top of this without a clear, specific need would result in duplicated costs. Before investing in Azure Files, it’s important to assess whether the business requires its specialized features or if SharePoint can meet all the business’s cloud storage and collaboration needs.

Azure Files only makes sense for small businesses if you:

• Require cloud storage for specific applications that aren’t well-suited to SharePoint, especially if those applications need file shares via SMB or NFS protocols.
• Are running a hybrid cloud environment, where they need to extend their existing on-premises infrastructure to the cloud without moving entirely to the SharePoint ecosystem.
• Need to manage large amounts of data outside of SharePoint’s collaboration-focused environment (e.g., data storage for backend systems or applications).