How Much Does SharePoint Server Cost (+Additional Expenses)

How Much Does SharePoint Server Cost (+Additional Expenses)

Last Updated on December 23, 2024

Thinking of implementing SharePoint Server?

In this guide, let’s talk about the costs of running a SharePoint Server, along with other expenses to consider.

Let’s get started.

Licensing Components of SharePoint Server

Alright, before anything else, it’s important to understand the licensing structure before you make a purchase.

The system includes two primary components:

  1. System license
  2. Client access licenses (CALs)

The system license is required for each server running SharePoint for the base rights to install and use the software.

CALs though are needed for each user or device accessing the server.

They come in two types:

  • Standard CALs: Cover basic SharePoint features such as document management and team collaboration.
  • Enterprise CALs: Add advanced functionalities like business intelligence tools and enhanced search capabilities.

For CALs, you can choose between licensing individual users or devices, which depends on your organization’s needs.

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    Cost Breakdown (Server and CAL)

    A simple search would show you that for some reason, there’s not a lot of information about its pricing.

    Well, there’s a few possible reasons for that:

    • Licensing can sometimes be tailored to each organization’s needs.
    • Server licensing involves multiple components, which can be confusing.
    • There are also enterprise agreements and discounts.
    • Microsoft actually encourages businesses to consult with licensing specialists first.

    If you need precise pricing, contacting Microsoft is the best approach to getting accurate quotes for your deployment.

    But typically, the prices are the following:

    • Server license costs = $5,000 per server
    • Standard CAL costs = $180 per user or device
    • Enterprise CAL costs = $90 per user per device (one-time purchase)

    When you plan for deployment, make sure to consider both the number of users and the level of access they need.

    For example, if you have 100 users needing full enterprise features, the licensing costs would be:

    • Server License: $5,000
    • Enterprise CALs: $90 × 100 = $9,000

    Total: $14,000

    Keep in mind that these figures are approximate and can vary based on factors like volume discounts and agreements.

    You can consult with me first or any other specialists to get more accurate estimates of what your organization needs.

    Additional Expenses to Consider

    I hate to break it to you, but the cost of SharePoint Server goes beyond licenses.

    Several other factors can impact your total expenses, including:

    • Hardware and infrastructure
    • Implementation and customization
    • Maintenance and support
    • Training and user adoption
    • Third-party tools and add-ons

    Naturally, the setup would involve setup fees, consultant services, and customizations to align SharePoint with you.

    There are also ongoing expenses like regular updates, security patches, and technical support agreements.

    Consider these factors in addition to licenses to avoid any surprises and to have a smoother implementation.

    Comparing SharePoint Server with SharePoint Online

    Well, there are cases where SharePoint Online is the better, more logical option for your organization.

    For example, you may prefer:

    • An easy-to-understand subscription model
    • Less need for in-house IT support
    • Seamless scaling as resources are managed in the cloud

    For organizations with strict data control requirements or custom workflows, SharePoint Server is a better fit.

    Meanwhile, SharePoint Online is better for those who want flexibility, lower upfront costs, and minimal IT management.

    👉 Related: SharePoint Editions: A Detailed Comparison and Review

    Do you have any questions about the costs of running a SharePoint Server? Let me know below.

    For any business-related queries or concerns, contact me through the contact form. I always reply. 🙂

    About Ryan Clark

    As the Modern Workplace Architect at Mr. SharePoint, I help companies of all sizes better leverage Modern Workplace and Digital Process Automation investments. I am also a Microsoft Most Valuable Professional (MVP) for SharePoint and Microsoft 365.

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