This blog explains you about the comparison between SharePoint Online and On-Premises. As you are aware that MS SharePoint Online and Office 365 Exchange are available as a Software as a Service (SaaS). Excellent eight comparisons to brief you about which one suits your requirements.

1. Range of Functions SharePoint Online and On-Premises

Microsoft introduced Mobile first and Cloud first strategies. In SharePoint, This feature available only online and moved to On-Premises installations.

Modern Sites is a new attractive innovation, which has a complete redesign of SharePoint interface and it is suitable for mobile devices. The advance feature is named as SharePoint Framework.
SharePoint On-Premises helps you in transferring modern pages. This shows the importance of cloud, where all the data are saved in cloud.

2. Modern tools

Modern tools are available in 365 online, which helps you in making your task easier, which results in increase in productivity. If you want to use Office 365 web content management and their processes in SharePoint Online, you can use Microsoft PowerApps, Microsoft Flow, Azure functions.

This features can be used in mobile and no alternative for Office 365 SharePoint Online. An attractive option,  you can store the files in the datacenter. you can get the benefits of SharePoint Online.

3. Updates

In on-premises, the user has to manage their own updates, where as in online, Microsoft manages the installation and deployment of updates.

4. Availability

Availability can be controlled, if datacenter is operated. 99.9% availability is guaranteed in Office 365 and Microsoft.

5. Backups

SharePoint Online is regularly backed up by Microsoft, few data is failed in the datacenter. You should always be aware that your datacenter works perfectly.

6. External users connection

If you are choosing SharePoint On-Premises, you need to develop your own infrastructure, where you can connect to external users.
In SharePoint, you can connect to external users and improve using variety of Azure services. So you can use two-factor authentication.

7. Scaling

In SharePoint On-Premises scaling should be taken care by the user, but Microsoft is responsible of scaling, if you user Office 365.

8. Management SharePoint Online and On-Premises

To have freedom of doing things of your own, you should have Central Administration at your disposal and PowerShell as Local Admin. Online has some restriction toward clients while using farm. This is the reason of you having access to SharePoint client level, and not to the farm level.

There is an option of automating admin tasks in SharePoint, where you can load various Power Shell cmdlets. You don’t develop infrastructure. PowerShell commands operates on own infrastructure and connect with Online or Office 365.

Use features in Central Administration such as Business Connectivity Service and Manager Metadata in SharePoint Online. If you check in Microsoft, you will find Multi-client capability for this part of the online version.