SharePoint vs Network File Share: Best Data Storage Choice?

Last Updated on December 14, 2023

Need a data storage solution for your business?

In this guide, you will learn more about SharePoint vs network file share as two popular choices, and how to choose between the two.

Let’s get started.

What is SharePoint?

SharePoint serves as a versatile platform that can function either in the cloud or on-premises.

Before we talk about anything else, let’s review the facts about SharePoint including its features and pros and cons.

Note: If you’re already familiar with SharePoint, feel free to skip this part.

Definition and Overview

Basically, SharePoint is a web-based collaboration platform that integrates with Microsoft Office (now Microsoft 365).

Originally launched in 2001, SharePoint has evolved over the years to become an indispensable tool for businesses of all sizes.

It’s designed to help teams work together seamlessly, whether they’re sitting in the same office or scattered around the globe.

SharePoint offers two main deployment options:

Cloud-based (SharePoint Online)
On-premises (SharePoint Server)

This flexibility allows you to choose the best fit for your specific business requirements.

Features of SharePoint

Document management, team collaboration, or workflow automation — SharePoint has the right features to make it work.

Here are its key features:

1. Document Management

Managing documents effectively is essential for any business, and SharePoint has extensive document management system features.

The platform offers a centralized SharePoint document library where you can access files, store, share, and manage documents with ease.

Features like version control let you track changes and revert to previous versions, ensuring that mistakes can be quickly corrected.

See the changed metadata in the version history of a list item

2. Team Collaboration

Teamwork is at the core of SharePoint.

With the ability to create individual SharePoint sites for different departments or projects, you can foster an environment of focused and organized collaboration.

Each site can have its own set of tools like SharePoint document libraries, discussion boards, and calendars, making team coordination a breeze.

3. Workflow Automation

Streamlining repetitive processes is crucial for improving efficiency, and SharePoint’s workflow automation features are designed to do just that.

You can automate a wide range of tasks:

From simple document and project management approvals to complex multi-step processes

Trigger: When an item is created or modified

This is made possible by Power Automate’s integration.

Whether you use out-of-the-box workflows or create custom ones, SharePoint makes automation accessible.

4. Built-In Security

Data security is paramount, and SharePoint doesn’t take it lightly.

The platform offers robust security features, including multiple levels of permissions and access controls.

name and description of new permission level

You can specify who can view, edit, or delete specific documents, giving you complete control over your data.

Advanced security options like data loss prevention are also available to add an extra layer of protection.

5. Search Functionality

SharePoint’s advanced search capabilities can help locate information quickly.

You can search by file name, content within the SharePoint document library, and even meta-tags.

The search feature is not just limited to documents but extends to other types of content like sites and discussion boards as well.

Pros of Using SharePoint

Choosing the right data storage and collaboration platform is crucial for any business.

SharePoint offers a multitude of advantages that can significantly benefit your operations.

Here’s a table that illustrates the benefits of using SharePoint:

Pros	Description
Ease of collaboration among teams	SharePoint shines in enabling real-time collaboration. It offers dedicated spaces for different teams, streamlining resource management and project timelines.
Advanced search capabilities	The platform boasts advanced search features that go beyond simple file names. You can also search by content and meta-tags, making it quick and easy to find what you need.
Customization and scalability	SharePoint is highly adaptable, fitting both small businesses and large enterprises. You can modify features, create custom workflows, and even build unique applications.
Built-in security measures	With robust security features, SharePoint ensures your data is well-protected. This includes multiple permission levels and options like data loss prevention.
Seamless integration with Microsoft products	If you’re already using Microsoft Office, SharePoint integrates effortlessly with tools like Word, Excel, and PowerPoint, simplifying your workflow.
Cost-effective	Although there are initial costs, SharePoint proves cost-effective in the long run by improving team collaboration and streamlining workflows, which can lead to increased productivity.

By considering these advantages, you will have a clear picture of how SharePoint can be a beneficial asset to your business.

Its capabilities in collaboration, search, customization, and security make it a compelling choice for businesses looking to optimize their data storage and teamwork efforts.

Cons of Using SharePoint

While SharePoint offers a plethora of benefits, it’s essential to consider its drawbacks to make an informed decision for your business.

Below are some of the key cons of using SharePoint:

Cons	Description
Complexity in setup and management	Setting up and managing SharePoint can be challenging and time-consuming, especially for small businesses without dedicated IT resources.
Cost implications	While it can be cost-effective in the long term, the initial setup, maintenance, and licensing fees can be expensive, particularly for small and medium-sized businesses.
User experience	The platform is powerful but not always user-friendly. Employees might find it overwhelming initially, potentially affecting productivity.
Software conflicts and compatibility issues	SharePoint works well with Microsoft products, but compatibility can be an issue with third-party software, requiring extra time and resources to resolve.
Limited offline capabilities	SharePoint Online focuses on an excellent online experience but offers limited offline functionality. This could be a drawback if offline access is essential for your team.
Performance concerns	For larger organizations with high data and user volume, performance can be a concern and may require additional hardware and software resources, increasing costs.

While SharePoint is a robust and feature-rich solution:

Its complexities, costs, and certain limitations make it crucial for businesses to evaluate if it’s the right fit for their specific needs.

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What is Network File Share?

Network file share operates as a file storage and sharing system on a local area network (LAN).

It essentially functions as a standard network file server.

Now that we’re done with SharePoint, let’s dive further into the definition, core features, and unique aspects of network file sharing.

Definition and Overview

Network file sharing (NFS) is a tried-and-true method of storing and sharing files within a local area network (LAN).

Unlike cloud-based solutions, NFS relies on traditional file servers that are physically located within your office or data center.

This technology has been around for decades, offering a straightforward way to enable file sharing between computers and servers on the same network.

Here are some quick facts:

Because it operates over your local network, NFS generally provides faster access to files and is less dependent on internet connectivity.
With a simple file server setup, it works well with various operating systems like Windows, macOS, and Linux.
It can be more cost-effective in the long term compared to cloud solutions that require ongoing subscription fees.

Features of Network File Share

Though it might not boast the extensive feature set of platforms like SharePoint:

It has its own set of capabilities that make it a reliable choice for many businesses looking to store files.

Here’s a table that explains the core features of NFS:

Features	Description
Directory structure	NFS provides an organized directory structure, making it easy to categorize and locate files.
File permissions	You can set read, write, or execute permissions for individual users or groups, enhancing file security.
Offline access	NFS allows access to files even without the internet, making it reliable for businesses requiring constant file access.
Speed and efficiency	Due to its local network operation, NFS generally offers faster data transfer speeds compared to cloud solutions.
Backup and restore	Many NFS solutions offer built-in backup and restore capabilities, safeguarding your data.
Multi-platform support	NFS is compatible with multiple operating systems like Windows, macOS, and Linux, offering flexibility.

Pros of Using Network File Share

What can you expect to get from it?

Well, here are the short of the benefits NFS can give businesses:

Pros	Description
Simplicity and ease of use	NFS is straightforward to set up and manage, requiring minimal technical skills. Its folder-based structure is user-friendly.
Fast local access to files	Operating over your local network, NFS offers faster file access and data transfer compared to cloud-based solutions.
Cost-effectiveness	NFS usually involves a one-time investment in hardware and software, making it cost-effective in the long run, especially for smaller businesses.
Robust security features	With customizable file permissions, NFS enhances the security of your sensitive data.
Offline access	NFS allows for offline file access, ensuring work continuity even without an internet connection.
Compatibility	NFS supports multiple operating systems like Windows, macOS, and Linux, providing flexibility in mixed-OS environments.
Control over data	Storing all data on-premises, NFS gives you complete control, which is crucial for businesses with strict data governance requirements.

Its strengths in simplicity, speed, and security make it a reliable choice for organizations that prioritize these aspects.

Cons of Using Network File Share

While NFS offers several advantages, it’s essential to be aware of its limitations to make a well-informed decision for your business.

Here are some of the key drawbacks to consider:

Cons	Description
Limited collaboration features	NFS lacks advanced tools for real-time document editing and workflow automation, which could limit its usefulness for collaborative projects.
Challenges in remote access	Accessing files remotely can be difficult and may require workarounds like VPNs, which could be cumbersome and less secure.
Scalability concerns	Scaling NFS can be challenging and costly, often requiring hardware upgrades and potential downtime.
Maintenance overheads	You’re responsible for all maintenance aspects, from hardware failures to software updates, which can be burdensome for small businesses.
Lack of built-in data recovery	While some NFS solutions offer basic backup features, they generally lack advanced data recovery options compared to cloud-based platforms.
Dependence on physical infrastructure	NFS is vulnerable to hardware failures, power outages, and natural disasters since it relies on physical servers on-premises.
Complexity in multi-office environments	For businesses with multiple locations, NFS can be complex to implement and may involve additional security risks when sharing files between offices.

Its drawbacks in areas like collaboration, remote access, and scalability are important considerations in your decision-making process.

Key Differences Between SharePoint and Network File Share

Now that we talked about SharePoint and NFS in detail, it’s time to understand their key differences.

Collaboration

How do these two solutions compare in terms of collaboration?

Let’s take a look:

Feature	SharePoint	Network File Share
Real-time collaboration	Supported: Allows multiple users to co-author business documents and see changes in real-time.	Not supported: No real-time co-authoring; users must save and reopen files to see changes.
Team sites	Available: Create dedicated sites for different projects or departments with discussion boards, calendars, etc. — particularly useful for a SharePoint document center.	Not available: No feature for dedicated projects or departmental sites.
Workflow automation	Supported: Automate tasks like document approvals, and create custom workflows.	Not supported: No built-in workflow automation; must rely on external tools for any automation.
Integrated communication tools	Yes: Seamlessly integrates with Microsoft Teams and Outlook for unified communication.	No: No built-in communication tools; businesses must use separate software for team communication.
Version control	Advanced: Robust versioning features allow tracking of document changes and the option to revert to previous versions.	Limited: No built-in version control; manual backups are required for versioning.
Basic file sharing	Comprehensive: Offers advanced permissions and sharing settings, both within and outside the organization.	Basic: Provides simple file sharing with basic permissions limited to the local network.
Local access speed	Varies: Speed depends on internet connectivity; can be slower for large files.	Fast: Operates over a local area network, ensuring quick access to files, especially beneficial for large files.
Offline access	Limited: Some offline capabilities, but primarily designed for online access; might affect the way users download files.	Strong: Files are accessible offline as long as you are connected to the local network.
Collaboration on mobile devices	Supported: Mobile-friendly design and apps allow for collaboration on the go.	Limited: No native support for mobile devices; remote access solutions may be required.

Security

In terms of security:

SharePoint has a more advanced set of features
NFS has basic security functionalities

Here are the details:

Security Feature	SharePoint	Network File Share
User authentication	Advanced: Integrates with Azure AD for multi-factor authentication and single sign-on.	Basic: Typically relies on local network credentials; may not support advanced authentication methods.
File permissions	Comprehensive: Fine-grained permissions at the file, folder, and SharePoint site level.	Moderate: Permissions can be set at the file and folder level but are generally less granular.
Data encryption	Strong: Supports encryption both in transit and at rest.	Varies: Generally supports encryption in transit; at-rest encryption depends on the specific setup.
Data loss prevention	Available: Advanced features like data classification and policy enforcement, crucial for an effective document management strategy.	Limited: No built-in data loss prevention; must be managed through third-party tools or manual controls.
Auditing and monitoring	Robust: Detailed audit logs and real-time monitoring capabilities.	Basic: Limited to basic access logs and manual monitoring unless augmented with third-party solutions.
Remote wipe capability	Supported: Ability to remotely wipe data from lost or stolen devices.	Not Supported: Lacks native capabilities for remote wiping of data.
Intrusion Detection System (IDS)	Available: Can integrate with enterprise-level intrusion detection systems.	Limited: Requires third-party intrusion detection systems; not built into the platform.
Firewall support	Configurable: Can be set up behind firewalls and can configure custom firewall rules.	Varies: Dependent on local network firewall configurations; not a built-in feature.
Compliance	Strong: Supports various compliance standards like GDPR, HIPAA, and ISO 27001.	Moderate: Compliance is generally achievable but requires additional configuration and third-party tools.
Backups and recovery	Scheduled: Automated backups and easy-to-use recovery options.	Manual: Typically requires manual configuration for backups; recovery options may be limited.

Cost

The gist here is that, SharePoint involves a recurring subscription while NFS requires a one-time investment.

But there’s more to it than meets that since you need to take scalability, maintenance, and upgrades into account.

Cost Factor	SharePoint	Network File Share
Initial setup cost	Moderate to high: Licensing fees, plus potential costs for customization and training.	Moderate: Initial investment in hardware and software, but no recurring licensing fees for basic setup.
Monthly/Annual subscription fees	Yes: Recurring fees based on the number of users and selected features.	No: One-time investment in hardware, though additional costs may arise for upgrades and maintenance.
Customization costs	Varies: Can be significant if extensive customization or third-party add-ons are needed.	Limited: Generally lower costs as the system offers fewer customization options.
Maintenance costs	Moderate: Requires regular updates; potential costs for cloud storage if using SharePoint Online.	Moderate to high: Includes hardware maintenance, software updates, and potential costs for backups.
Scalability costs	Flexible: Easier to scale with business growth, but costs increase with added users and features.	Varies: Adding more storage or users often requires a significant investment in hardware.
IT staffing costs	Moderate: Requires ongoing management, which may necessitate dedicated IT staff or outsourcing.	Moderate to high: Requires in-house IT staff for hardware maintenance, updates, and troubleshooting.
Data transfer costs	Limited: Generally included in subscription fees, but can incur costs for large-scale data transfers.	None: Data transfers are local and do not incur additional costs.
Security-related costs	Varies: Basic security features included, but advanced features may require additional investment.	Varies: Basic file permissions included; advanced security measures may require third-party solutions.
Disaster recovery costs	Lower: Cloud-based options include disaster recovery features, reducing additional investment.	Higher: Requires a separate disaster recovery plan, including off-site backups and redundant systems.
Total Cost of Ownership (TCO)	Varies: Can be cost-effective in the long run due to advanced features, but initial costs may be high.	Varies: Lower initial recurring fees but can have higher long-term costs due to hardware upgrades.

Scalability

It’s quite clear here that NFS will have more problems in scalability especially when going across multiple locations.

Here are more details:

Scalability Factor	SharePoint	Network File Share
User scalability	High: Easily add or remove users through licensing adjustments; scales with your business needs, crucial if the organization has a large volume of company files.	Moderate: Scaling may require additional hardware and potential system downtime.
Data volume scalability	High: Cloud-based options allow for easy scaling of storage space as needed.	Moderate: Requires manual addition of storage hardware, which could entail downtime.
Feature scalability	Flexible: Add or remove features easily based on business requirements; pay only for what you need.	Limited: Feature set is fixed; any new capabilities would require third-party solutions.
Geographic scalability	High: Cloud-based architecture allows for seamless scaling across multiple locations.	Low: Designed for local area networks; scaling across multiple locations is challenging and complex.
Performance scalability	Moderate: Good performance that generally scales well, but may require additional configuration.	Moderate: Performance is dependent on the local network and hardware; may require upgrades to scale.
Technical expertise required	Moderate: Requires understanding of SharePoint administration for scaling but is generally straightforward.	High: Requires in-depth understanding of network architecture and hardware for effective scaling.
Cost of scaling	Varies: Costs will increase with additional users and features, but generally a smooth scaling process.	Varies: Can incur significant costs for hardware upgrades and potential system downtime.
Third-party integration scalability	High: Easily integrates with a wide range of third-party solutions, making it easier to add new features.	Moderate: May require custom solutions for third-party integrations, limiting scalability.
Disaster recovery scalability	High: Cloud-based options include built-in disaster recovery scaling.	Low: Requires manual setup of disaster recovery systems, complicating scalability.

Accessibility

In terms of accessibility:

SharePoint excels in remote and mobile access
NFS though has strong offline access

Here’s more:

Accessibility Factor	SharePoint	Network File Share
Remote access	High: Easily accessible from any location with an internet connection.	Limited: Primarily designed for local access; remote access requires VPN or other solutions.
Mobile accessibility	Strong: Native apps and mobile-friendly web design for on-the-go access.	Weak: No native mobile support; third-party solutions needed for mobile access.
Offline access	Moderate: Some offline capabilities, but best when connected to the internet.	High: Strong offline access when connected to the local network; no internet dependency.
Multi-platform support	High: Accessible via web browsers on Windows, macOS, and Linux; native apps for mobile devices, optimized with Microsoft tools.	Moderate: Accessible on Windows and may require additional configuration for macOS and Linux.
Browser compatibility	Strong: Compatible with most modern web browsers like Chrome, Firefox, and Edge.	N/A: Not browser-based; relies on network file protocols for access.
User Interface	User-friendly: Intuitive user interface designed for ease of use.	Basic: Utilizes the file explorer interface of the operating system; less intuitive for some users.
Search functionality	Advanced: Robust search features for quick file and information retrieval.	Basic: Limited to OS-based search functions; no advanced search capabilities.
Accessibility standards compliance	Compliant: Meets various web accessibility standards, making it usable for people with disabilities.	Varies: Dependent on the operating system and network configuration; may not meet all accessibility standards.
Multiple language support	Strong: Supports multiple languages for global accessibility.	Limited: Language support is dependent on the operating system.

Making Your Choice

When it comes to selecting the right data storage solution for your business, the decision is not to be taken lightly.

Both SharePoint and Network file share offer distinct advantages and limitations.

Questions to Ask Yourself

Before you make your decision, consider asking yourself the following questions:

Questions	SharePoint	Network File Share
What are my collaboration needs?	If real-time collaboration and workflow automation are crucial, SharePoint has the edge.	If simple, in-office file sharing suffices, network file sharing may be adequate.
How important is accessibility?	SharePoint offers better remote and mobile access.	Network file share excels in fast local access when most work is done in the office.
What are my security requirements?	SharePoint usually provides more advanced security features like data encryption and user authentication.	Evaluate based on your specific compliance and security needs; network file sharing offers basic security features.
Do I need to scale soon?	Consider SharePoint if you anticipate rapid growth in data volume, user numbers, or geographic locations.	Network file sharing may require hardware upgrades and can be costly and complex to scale.
What’s my budget?	Account for initial setup costs, ongoing fees, and scalability expenses.	Generally involves a one-time investment in hardware and software, potentially making it cost-effective long term.

Expert Recommendations

After you’ve considered these questions, it’s a good idea to consult with experts or look into case studies.

For example, if you ask me, here’s what I recommend based on general guidelines:

Small to medium businesses: If you’re a smaller operation with limited collaboration needs and budget constraints, network file share may suffice.
Medium to large enterprises: If you’re part of a larger organization that relies heavily on team collaboration and has a need for advanced features, SharePoint is often recommended.
Highly regulated industries: For businesses in sectors like healthcare or finance that have stringent compliance requirements, SharePoint’s advanced security features may be beneficial.
Multi-location businesses: If your business operates across multiple locations, the cloud-based features of SharePoint offer better geographic scalability.

If anything in this comprehensive guide left you scratching your head, feel free to drop a comment below.

For business advice or inquiries, message me through the contact form here. I will reply as soon as possible.