Nextcloud vs. SharePoint: What is right for small and medium-sized businesses?

SharePoint is Microsoft's platform for documents, intranet and collaboration and is deeply integrated into Microsoft 365. Nextcloud is the open-source alternative that you operate yourself or with a host in Germany. In short: if you already work entirely in Microsoft 365, SharePoint is the most convenient solution. If you prioritize data sovereignty, independence and hosting in Germany, Nextcloud is the better choice.

The comparison at a glance

• Operator: SharePoint – Microsoft (cloud) · Nextcloud – yourself or a host of your choice
• Data location: SharePoint – Microsoft data centers (EU processing possible) · Nextcloud – freely selectable, e.g. Germany
• License: SharePoint – proprietary, subscription per user · Nextcloud – open source (AGPLv3), optional support contract
• Integration: SharePoint – Teams, Outlook, Office, Power Automate · Nextcloud – custom apps, Office server, open interfaces
• Intranet: SharePoint – very mature · Nextcloud – possible, less extensive
• AI: SharePoint – Microsoft Copilot (cloud) · Nextcloud – Nextcloud Assistant, also with local models
• Operating effort: SharePoint – low, operated by Microsoft · Nextcloud – higher, self-operated or via service provider

Where SharePoint is stronger

• Integration into Microsoft 365: If you use Teams, Outlook and Office extensively, you get everything from a single source.
• Intranet and portals:Extensive functions for company websites and knowledge portals.
• Workflows:Integration with Power Automate and many Microsoft services.
• No in-house operation:Microsoft handles updates and infrastructure.

Where Nextcloud is stronger

• Data sovereignty: You determine storage location and access – important for sensitive data.
• Independence: no changes to prices or terms after a corporation has made the decision.
• Openness: open code, open standards, integration with any systems.
• AI without the cloud: local models via the Nextcloud Assistant – see Nextcloud + AI.
• Costs: no per-user license fees for the software itself.

Data protection compared

Both solutions can be used in compliance with data protection regulations. With SharePoint, the assessment is based on Microsoft’s contracts, the EU data boundary, and the EU-U.S. Data Privacy Framework; in 2022, the German supervisory authorities had raised concerns about Microsoft 365, but the situation has changed since then. With Nextcloud, compliance depends on how you or your hosting provider operate it. For those working with particularly sensitive data – health, social services, clients – the full control offered by Nextcloud is often perceived as easier. More on this in general: Document management with high data protection standards.

Decision support for SMEs

1. Do you already use Teams, Outlook and Office extensively and are satisfied with them? → this speaks in favor of SharePoint.
2. Do you process a lot of sensitive data or have strict requirements (e.g. public-sector clients)? → points to Nextcloud.
3. Do you want to reduce dependence on a single vendor? → points to Nextcloud.
4. Do you have no one to operate it? → SharePoint, or Nextcloud via a service provider.
5. Are you planning to use AI with internal documents without the cloud? → points to Nextcloud.

Mixed solutions

Some companies combine: Microsoft office applications, sensitive storage in Nextcloud. This can make sense, but it increases complexity. The important thing is a clear rule for which data is stored where.

bettersorted relies for its customers on open, transparent modules – operated on servers in Germany and bundled in the automaisa Hub. We provide manufacturer-neutral advice, are a BAFA-registered consultant and authorized INQA coach. Consulting and guided implementationcan be subsidized through the INQA-Coaching with 80%; the Funding Check shows the right path. For a non-binding initial consultation: Contact.

Example: two companies, two decisions

Two illustrative scenarios: An engineering firm has worked for years with Teams, Outlook, and complex Excel templates; the data is mainly technical, with hardly any personal data. In this case, SharePoint is the stronger choice. A care network, by contrast, processes health data, wants to use AI with local models, and become independent of license pricing – here, Nextcloud, operated in Germany, is the better fit.

Set up the cost comparison correctly

• SharePoint: License per user in the Microsoft 365 subscription, low operational effort, possibly additional licenses for AI functions.
• Nextcloud: Hosting or your own server, setup, operation, optional support contract – no per-user license.
• For both: Migration, training, permissions concept, data protection documentation.

Calculate over three to five years, not just for the first year.

Costs and funding

The costs of introducing a collaboration platform consist of three parts: Setup (planning, installation, integration, testing), ongoing operation (servers or hosting, updates, monitoring, data backup) and support for employees (training, rules, contacts). We do not quote fixed prices because scope and starting point vary greatly. The software itself does not incur license costs for open-source solutions.

Funding is not provided for the technology, but for the consulting and guided implementation: through INQA-Coaching the federal government covers 80% of coaching costs nationwide (up to €11,520, vouchers until 30.06.2028). A preliminary analysis can be covered via the BAFA consulting grant subsidize – with 80% in the new federal states, Lüneburg and Trier, otherwise 50%, for applications submitted by 31.12.2026. For investments, some states offer their own programs – see Funding opportunities for companies in Germany.

Frequently asked questions

Is Nextcloud a good alternative to SharePoint?

Yes, for file storage, approvals, collaborative editing, and teamwork — especially if data sovereignty and hosting in Germany are important. For extensive intranet portals, SharePoint is more mature.

Which is cheaper, Nextcloud or SharePoint?

Nextcloud has no per-user license costs, but there are costs for hosting and operations. SharePoint is included in the Microsoft 365 subscription. Which is cheaper depends on team size and operating model.

Can you switch from SharePoint to Nextcloud?

Yes, files can be transferred. Permissions, sharing, and workflows need to be planned and usually set up again. A pilot with one team is the best way to start.

Does Microsoft Office work with Nextcloud?

Yes, Office files can be stored in Nextcloud and opened with desktop Office. For collaborative editing in the browser, an Office server is connected.

As of October 2026.