Sharepoint - Online vs On-Premise vs Hybrid - Overview

Sharepoint Online

- Easy to set up the service and scale it
- Gives time to focus on business needs and customizations (hardware & backend maintenance is taken care of)
- Accessible anywhere 24x7, secure, backed up
- SharePoint Online only supports Site- and Web-scoped solutions.
- Only partial-trust solutions are supported in SharePoint Online.
- Not 100 percent feature parity with its on-premises counterpart
- Limited Storage

Sharepoint On Premise

- The environment and its governance, customization, and federation strategy is owned by the organization. There is absolute control of servers,     permissions/security, deployment, customization and policies, and federation between line-of-business systems, legacy system integration, and various data sources.
- On Premise hosting also means full control of Security Management. For larger businesses and organizations with highly sensitive data, keeping data warehouses On Premise has been perceived to be the best (if not only) option.
- All documents are saved and treated in a local database, greatly enhances the data security, which is very important for many big companies. With full control, you can pull the outside plug anytime you want on your data being stored On Premise while still being able to access it internally.
- Maintain an in house infrastructure team 24/7 in order to maintain the infrastructure and make sure it stays up and running.
 - Uninstalls, upgrades, or patches has to be managed by in house infrastructure team - costing time and money. Responsibility of in house infrastructure team to monitor and administer the SharePoint environment.

Sharepoint Hybrid

Hybrid SharePoint environments combine on-premises Microsoft SharePoint Server 2010 with Office 365 — Microsoft SharePoint Online. Hybrid environments enable organizations to achieve a higher degree of flexibility than forcing a choice between either an on-premises or cloud model.  Organizations can start to achieve the benefits associated with the use of cloud computing coupled with the customization flexibility and tight data governance of an on-premises system, while delivering a consistent experience to users.

- Organizations wishing to migrate workloads from an existing on-premises environment to the cloud over time, in a phased approach
- Organizations wanting to supplement their cloud environment with additional features or customizations which are currently only possible on-premises
- Compliance or data sovereignty reasons which might stipulate certain data be hosted in a particular location
- Active Directory Single-sign on — giving users the ability to authenticate seamlessly across both the on-premises and Office 365 environments
- Common site and document templates plus a consistent user interface — so that users can easily navigate a familiar user interface across both on-premises and Office 365 environments
- A licensing model that gives organizations the freedom  to deploy SharePoint Online and SharePoint Server.

When you should go for Sharepoint Hybrid :

Requires features not yet available in Office 365
Your portal relies on features such as Performance Point, advanced business intelligence or Records Center.
Use features or advanced configurations not yet available in Office 365 in your on-premises environment, but use Office 365 as the platform for the majority of your content where these features are not required.

Significant investment in customizations
You have a heavily customized on-premises environment (for example using custom-developed code or partner solutions).
Continue to get the value from your existing customization investments on-premises while you migrate eligible customizations to the cloud. Running in a hybrid state affords you time to assess and potentially re-architect your solution for use in Office 365.  Note, however that some integration options — such as access to Line Of Business data — might not be available with the current Office 365 service.

Concerns over global network performance
You have a distributed workforce and concerns over global network performance with your on-premises environment.
Your current on-premises deployment may offer good performance for users physically near your datacenter, but remote users in other worldwide locations may not experience the performance they desire.  A hybrid solution could allow you to locate your Office 365 environment in a Microsoft datacenter closer to your remote users.