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Nextcloud vs. SharePoint: Comparison for Businesses and Public Sector, with Costs, Data Protection and Migration

Nextcloud vs. SharePoint: Comparison for Businesses and Public Sector, with Costs, Data Protection and Migration

Editorial note: The information in this article was compiled to the best of our knowledge at the time of publication. Technical details, prices, versions, licensing terms, and external content may change. Please verify the information provided independently, particularly before making business-critical or security-related decisions. This article does not replace individual professional, legal, or tax advice.

Evaluating Nextcloud as an alternative to SharePoint and OneDrive? WZ-IT operates managed Nextcloud in German data centres, handles the migration from SharePoint and OneDrive, and takes care of updates, backups and monitoring. Book a free initial consultation

For many businesses and public authorities, Nextcloud vs. SharePoint is not a product question but a platform decision: do files, sharing and collaboration stay in Microsoft 365, or do they live on an open-source platform running in your own data centre or with a German operator? Both systems store files, sync them and allow co-editing. The differences lie in the licence model, data location, integration and how easy a later switch will be.

This comparison sets out both platforms factually, gives prices from vendor sources, works through an example for 50 users, shows where SharePoint is clearly ahead, and describes the migration path from SharePoint and OneDrive to Nextcloud. As of October 2026.

Key points at a glance:

  1. SharePoint is part of Microsoft 365 and is almost always paid for with the bundle. Nextcloud is open source (AGPL-3.0) and can be run without licence costs or with an Enterprise subscription.
  2. SharePoint wins on integration with Teams, Outlook, Power Platform and Purview. Nextcloud wins on data control, choice of operator and replaceability.
  3. Microsoft raised the list prices of most Microsoft 365 suites on 1 July 2026. Existing agreements are affected from their next renewal.
  4. Files can be migrated with rclone. Sharing and permissions are rebuilt in Nextcloud, and version history does not move across.
  5. The first step is often not a full switch but Nextcloud as file storage alongside Microsoft 365.

Table of Contents

  1. Short answer: when Nextcloud, when SharePoint
  2. What Nextcloud and SharePoint are
  3. Comparison table Nextcloud vs. SharePoint
  4. Costs: licence model and an example for 50 users
  5. Data location, CLOUD Act and GDPR
  6. Collaboration and browser-based office
  7. Permissions, Active Directory and single sign-on
  8. Intranet, Teams and Power Platform: where SharePoint is ahead
  9. Sync clients and offline work
  10. Migrating from SharePoint and OneDrive to Nextcloud
  11. Common misconceptions
  12. Our approach at WZ-IT
  13. Further guides

Short answer: when Nextcloud, when SharePoint

Starting point Obvious choice Reason
Microsoft 365 E3 or E5 is licensed, Teams, Power Automate and Purview are used heavily SharePoint Licence already paid, integration without extra effort
An intranet with communication and hub sites is central SharePoint Pages, navigation and web parts are core functions
Data should be under your own control or with a European operator Nextcloud Runs in your own data centre or with an operator of your choice
Public sector, schools, healthcare or professionals bound by secrecy with high data control requirements Nextcloud Location, access and operator are freely chosen and contractually controllable
Costs should stay predictable, independent of a vendor's price rounds Nextcloud Community version licence-free, Enterprise with published prices
Teams and Exchange stay for now, file storage should become independent Nextcloud alongside Microsoft 365 Step-by-step switch, starting with the data

For businesses that want to replace Microsoft 365 entirely, the post Self-hosted Microsoft 365 alternative covers all building blocks from mail to sign-in. This post focuses on which platform should carry files and collaboration.

What Nextcloud and SharePoint are

SharePoint Online is the document and site service of Microsoft 365. It stores files in document libraries, provides team and communication sites, and is the storage behind Microsoft Teams: the Files tab of each standard channel is connected to a folder in the team's SharePoint site (Microsoft Learn, Teams-connected sites). OneDrive is each user's personal storage on the same technology. SharePoint runs only in Microsoft's cloud, and the Business plans are limited to 300 users (Microsoft Learn, SharePoint limits).

Nextcloud is an open-source platform for files and collaboration under AGPL-3.0 (GitHub, Nextcloud Server). The current version is 35.0.1, marketed as Nextcloud Hub 26 Summer (Nextcloud Changelog). It includes file storage with sync, browser-based office, calendar and contacts, Talk for chat and video meetings, and apps such as Collectives for knowledge collections (Nextcloud App Store, Collectives). Nextcloud runs on your own infrastructure or with an operator, for example as managed Nextcloud in German data centres. What to watch for when upgrading to version 35 is covered in the post Nextcloud 35 upgrade.

Comparison table Nextcloud vs. SharePoint

Criterion Nextcloud SharePoint Online (Microsoft 365)
Hosting and data location own infrastructure or operator of your choice, location freely chosen Microsoft cloud, EU storage via the EU Data Boundary
Cost model Community licence-free, Enterprise from EUR 71.29 per user per year (from 100 users), plus operation included in the Microsoft 365 subscription, Business Standard EUR 12.13, E3 EUR 37.78 per user per month
Storage limited by your hardware or operator 1 TB per organization plus 10 GB per licence, plus OneDrive per user
Collaboration and office Nextcloud Office (Euro-Office), alternatively Collabora Online, ONLYOFFICE, Thinkfree Word, Excel, PowerPoint in the browser and on the desktop
Intranet and sites not a focus, Collectives or a separate wiki communication and hub sites as a core function
Permissions shares, group folders, LDAP/AD, OIDC, SAML SharePoint groups, Entra ID, sensitivity labels with Purview
Integrations Talk, calendar, hundreds of apps, Exchange connector and Teams integration in Ultimate Teams, Outlook, Power Automate, Power Apps, Copilot
Admin effort updates, backups, monitoring by your own team or an operator operated by Microsoft, tenant and permission management remains
Exit and lock-in open code, data on your own storage, operator replaceable tied to the Microsoft tenant, export via APIs and tools

Prices net, as of October 2026, sources in the next section.

Costs: licence model and an example for 50 users

Microsoft 365. SharePoint is included in the Business and Enterprise plans. List prices on microsoft.com/de-de, net per user per month on an annual subscription billed annually, as of October 2026 (Microsoft 365 Business Standard, Microsoft 365 Business Premium, Microsoft 365 Enterprise, Business plans compared):

Plan with Teams EEA without Teams Note
Business Basic EUR 6.07 EUR 4.67 web and mobile apps only, up to 300 users
Business Standard EUR 12.13 EUR 9.34 desktop apps, EUR 14.56 on a monthly subscription
Business Premium EUR 19.06 EUR 16.28 adds security and device management
Microsoft 365 E3 EUR 37.78 EUR 30.36 Enterprise, no 300-user cap
Microsoft 365 E5 EUR 58.13 EUR 50.71 advanced security and compliance

On 4 December 2025 Microsoft announced new list prices effective 1 July 2026, citing additional AI, security and management features (Microsoft 365 Blog). According to the licensing FAQ, affected plans include Business Basic, Business Standard, Microsoft 365 E3 and E5. Existing agreements keep their price until the next renewal after 1 July 2026 (Microsoft Licensing, 2026 pricing updates FAQ). Microsoft 365 Copilot costs an additional EUR 26.00 per user per month.

Nextcloud. The community version is licence-free and has no hard user limit. From 1,000 active users without a subscription, the free push service is throttled (GitHub, Nextcloud Subscription Registry). Nextcloud Enterprise is available from 100 users, prices net per user per year (Nextcloud Pricing):

Tier from 100 users from 200 users Relevant for Microsoft environments
Standard EUR 71.29 EUR 53.17 Outlook add-in (Windows) as an option
Premium EUR 104.99 EUR 81.99 Outlook add-in as an option, 5+ years of maintenance per version
Ultimate EUR 204.75 EUR 183.75 Exchange connector, Teams integration, Office Online Server connector

Talk, Groupware and Office are options in Standard and Premium. For organizations below 100 users, Nextcloud refers to its hosted service Nextcloud One.

Example for 50 users per year, net:

Option Calculation Cost per year What is included
Microsoft 365 Business Standard 50 × EUR 12.13 × 12 EUR 7,278.00 SharePoint, OneDrive, Exchange, Teams, Office apps
Microsoft 365 Business Premium 50 × EUR 19.06 × 12 EUR 11,436.00 as Standard, plus security and device management
Microsoft 365 E3 50 × EUR 37.78 × 12 EUR 22,668.00 Enterprise features, compliance
Nextcloud Enterprise Standard minimum 100 × EUR 71.29 EUR 7,129.00 subscription only, operation and infrastructure come on top
Nextcloud Community operated by WZ-IT from EUR 129.90 × 12 per workload from EUR 1,558.80 operation with updates, backups, monitoring; storage and performance by configuration

The figures are not directly comparable. Microsoft 365 includes mail, Teams and desktop Office apps, while Nextcloud mainly replaces file storage and collaboration. If you use Nextcloud for files and leave mail and Teams with Microsoft for now, you keep paying for Microsoft 365, for example Business Basic at 50 × EUR 6.07 × 12 = EUR 3,642.00 per year. The cost side is therefore decided by which Microsoft services stay long term. What a complete switch including mail, chat and sign-in involves is described in the post Cloud exit for SMEs.

Data location, CLOUD Act and GDPR

For public authorities and many businesses, data location is where the discussion starts. The facts, as of October 2026:

Topic Fact Source
CLOUD Act US providers must disclose data in their possession, custody or control, regardless of whether it is stored inside or outside the United States 18 U.S.C. § 2713
EU Data Boundary storage and processing of customer data in the EU, with documented exceptions, for example for remote access by personnel and for security data Microsoft Learn, EU Data Boundary
EU-US Data Privacy Framework adequacy decision of the European Commission of 10 July 2023 European Commission, IP/23/3721
Action against the Data Privacy Framework dismissed by the EU General Court on 3 September 2025 (T-553/23) General Court, press release 106/25
Professional secrecy (Germany) disclosure to contributing service providers permitted where necessary, with an obligation to bind them to confidentiality Section 203 (3) and (4) StGB

Three factual conclusions follow:

  • Storage location is not the same as access. An EU data centre does not answer who can compel access. Under the CLOUD Act, what counts is the provider's control over the data.
  • SharePoint is not unlawful across the board. Data transfers to the US currently have a legal basis in the Data Privacy Framework. Whether a deployment fits depends on contract, configuration and type of data.
  • Section 203 StGB does not decide between the platforms. Professionals bound by secrecy such as law firms, tax advisers or medical practices must bind service providers to confidentiality in both cases.

With Nextcloud, data sits on your own infrastructure or with a chosen operator. The question of access is then governed by that operator's seat and jurisdiction. The German state of Schleswig-Holstein shows how a public administration takes this route: Nextcloud is replacing SharePoint there step by step (Schleswig-Holstein, milestone for digital sovereignty). The background on US providers and European alternatives is covered in the post Move servers and data to European clouds.

Not legal advice. Consult data protection or legal counsel for specific questions. Trademarks belong to their owners.

Collaboration and browser-based office

Both platforms support real-time co-editing. The difference lies in the office component:

Criterion Nextcloud SharePoint
Browser-based office Nextcloud Office based on Euro-Office, alternatively Collabora Online, ONLYOFFICE or Thinkfree Office Word, Excel and PowerPoint for the web
Formats DOCX, XLSX, PPTX as well as ODT, ODS, ODP Office Open XML as the main format
Desktop office Microsoft Office or LibreOffice locally, file via the sync client Microsoft 365 Apps saving directly to SharePoint
Versions versioning per file up to 50,000 major versions per file
External sharing links with password, expiry date, upload shares sharing links and guest access via Entra ID

Sources: Nextcloud Office, Nextcloud App Store, ONLYOFFICE, Microsoft Learn, SharePoint limits.

Nextcloud Office is based on Euro-Office, which builds on the open-source ONLYOFFICE code and, according to Nextcloud, offers high format fidelity with DOCX, XLSX and PPTX. If you work a lot with external partners in Microsoft formats, test with real files anyway: templates with fields, spreadsheets with formulas and macros, presentations with slide masters. How the office components differ in detail is covered in the post Self-hosted Microsoft 365 alternative.

Permissions, Active Directory and single sign-on

SharePoint manages permissions through SharePoint groups and Entra ID. The supported limit is 50,000 unique permissions per list or library, with a recommended maximum of 5,000. Once a library holds more than 100,000 items, inheritance can no longer be broken at library or folder level (Microsoft Learn, SharePoint limits). Grown libraries with many individual shares are therefore often hard to oversee, regardless of the platform.

Nextcloud connects directories and identity providers directly:

  • Active Directory and LDAP: the LDAP integration detects Active Directory without further adjustments (Nextcloud Admin Manual, LDAP).
  • Single sign-on: OpenID Connect and SAML, the latter via the SSO & SAML authentication app (Nextcloud App Store, SSO & SAML). Entra ID can be added as an identity provider this way, so staff sign in with their existing accounts during the transition.
  • Group folders: department and project storage with permissions per group, comparable to SharePoint libraries per team.

If several applications are connected, an identity service such as Keycloak sits in between. It uses Entra ID or Active Directory as its source and gives Nextcloud and other services a shared sign-in. For AI applications that access documents from Nextcloud or SharePoint, carrying over permissions is a topic of its own, covered in the knowledge article Connect local AI to Nextcloud, SharePoint, or a DMS.

Intranet, Teams and Power Platform: where SharePoint is ahead

An honest comparison names the areas where SharePoint is the stronger platform:

  • Integration with Teams: each team has a SharePoint site, and files from channels open in Word or Excel with the same permissions. Nextcloud offers touchpoints with Talk and the Teams integration in Ultimate, but not the same depth.
  • Intranet: communication sites, hub sites and navigation across many areas are core SharePoint functions, with up to 2,000 hub sites per organization (Microsoft Learn, SharePoint limits). In Nextcloud this is not a focus, and content usually moves to a wiki such as XWiki or BookStack. The approach is described in the post Introducing a company wiki.
  • Power Platform: Microsoft 365 licences include a limited set of Power Automate capabilities with standard connectors, while premium connectors require a separate licence (Microsoft Learn, Power Automate licences). Workflows, forms and lists built on SharePoint have to be rebuilt when switching.
  • Compliance tools: retention policies, eDiscovery and sensitivity labels via Microsoft Purview are integrated in E3 and E5.
  • Existing licences: if you already pay for E3 or E5, SharePoint costs nothing extra. A switch then only saves money if other services are replaced too.

For organizations where several of these points apply, SharePoint is usually the right storage. Nextcloud then makes sense when certain data should stay under your own control, such as case files, HR data or data subject to professional secrecy, while Microsoft 365 remains for the rest.

Sync clients and offline work

Function Nextcloud OneDrive and SharePoint
Desktop clients Windows, macOS, Linux Windows, macOS
Files on demand Windows: virtual files since client 3.2; macOS: File Provider in Finder Files On-Demand on Windows and macOS
Mobile iOS and Android, with offline marking iOS and Android
Recommended limit depends on server and client up to 300,000 files per synced library recommended
Path length depends on the file system 400 characters including file name

Sources: Nextcloud, desktop client 3.2 with virtual files, Nextcloud manual, desktop client, Microsoft Learn, SharePoint limits.

Little changes for staff in everyday work: files appear in Explorer or Finder, are downloaded when opened and stay available offline afterwards. For very large libraries, test with the real number of files on typical workstations before switching over.

Migrating from SharePoint and OneDrive to Nextcloud

Microsoft's own tools such as the SharePoint Migration Tool are built for migrating into Microsoft 365 (Microsoft Learn, SharePoint Migration Tool). Moving to Nextcloud uses other tools:

What Tool What is carried over What is rebuilt
Files from OneDrive and SharePoint libraries rclone as source, Nextcloud via WebDAV as target files, folders, modification times version history stays in SharePoint
Sharing and permissions export via the Microsoft Graph API as a permissions list an overview of who has access to what shares and group folders in Nextcloud
Accounts and groups LDAP/AD or Entra ID via SAML/OIDC accounts, groups as a starting point passwords stay with the identity provider
SharePoint pages, lists, workflows rebuild content wiki pages, forms, automation

rclone can only read and write permissions between OneDrive and SharePoint targets (rclone, OneDrive). For Nextcloud, shares are therefore recreated from the exported permissions list, ideally simplified to groups instead of individual shares. Nextcloud also offers migration from SharePoint, OneDrive, Teams and Exchange as a guided project, preserving permissions and metadata depending on the platform (Nextcloud, migrate from Microsoft 365).

The process in seven steps:

  1. Take stock: sites, libraries, OneDrive accounts, data volume, number of files, external shares, paths close to the 400-character limit.
  2. Clean up: identify orphaned sites and duplicate storage, and do not migrate data nobody needs.
  3. Define the target structure: group folders per department or project, personal storage, permissions via groups from AD or Entra ID.
  4. Set up sign-in: connect Nextcloud to AD, Entra ID or an identity service so that accounts exist before the data transfer.
  5. Initial transfer: move files with rclone, split large volumes by library, compare checksums and file counts.
  6. Pilot group: one department works in Nextcloud, and sync clients and browser-based office are tested in daily use.
  7. Cut-over: delta run for changes since the initial transfer, set SharePoint libraries to read-only, send external shares again.

During the cut-over, SharePoint and Nextcloud run in parallel. Teams channels point to Nextcloud folders during the transition until the further path for Teams is decided.

Common misconceptions

Misconception Correct is
"Nextcloud is just file storage." Nextcloud includes browser-based office, calendar, contacts, Talk and apps such as Collectives. A mail server is not part of it.
"SharePoint is banned under the GDPR." That blanket statement is not supported. The Data Privacy Framework applies, and permissibility depends on the individual case.
"With an EU data centre, the CLOUD Act does not matter." Under 18 U.S.C. § 2713, the provider's control counts, not the storage location.
"Nextcloud is always cheaper." With an existing E3 or E5 licence, SharePoint is already paid for. Nextcloud saves money when licences actually drop away or data control is decisive.
"Permissions from SharePoint move across automatically." rclone transfers permissions only between OneDrive and SharePoint targets. In Nextcloud, shares are recreated.
"The Nextcloud community version locks at 500 users." There is no user lock. From 1,000 active users without a subscription, the free push service is throttled.
"No co-editing of DOCX without Microsoft." Nextcloud Office, Collabora Online and ONLYOFFICE co-edit DOCX, XLSX and PPTX in the browser.

Our approach at WZ-IT

WZ-IT supports the decision between Nextcloud and SharePoint and the path that follows. Each step has a defined result.

  1. Initial call. We clarify how SharePoint, OneDrive and Teams are used today, which Microsoft services should stay, and which data should be under your own control.
  2. Selection with a defined scope, if more than file storage is up for decision. The collaboration and Microsoft 365 alternative selection costs from EUR 3,900 net. Demo instances are available for the duration of the selection, and you try them out yourself. The result is a decision paper with licence costs from vendor information, migration path and operating model. If SharePoint fits better, the paper says so.
  3. Migration. Inventory, target structure with group folders, connection to AD, Entra ID or Keycloak, transfer with rclone, pilot group and cut-over with a delta run.
  4. Operation in Germany. As managed Nextcloud, we operate Nextcloud via Managed Open Source in German data centres, from EUR 129.90 net per workload per month, with updates, backups and monitoring. Alternatively, Nextcloud runs on your own infrastructure. Enterprise subscriptions, if needed, are purchased directly from Nextcloud.

Further guides

Nextcloud or SharePoint: prepare the decision with figures. We compare both platforms against your licences and requirements, plan the migration from SharePoint and OneDrive, and operate Nextcloud in German data centres. Book a free initial consultation

Sources

Timo Wevelsiep

Written by

Timo Wevelsiep

Co-Founder & CEO

Co-Founder of WZ-IT. Specialized in cloud infrastructure, open-source platforms and managed services for SMEs and enterprise clients worldwide.

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