HomeNews / ArticlesMicrosoft 365Mobile AppWhat is SharePoint Online: what is sharepoint online explained for UK businesses

What is SharePoint Online: what is sharepoint online explained for UK businesses

If you've ever wished for a single, secure spot for your business's documents, projects, and company news, then you're already thinking along the lines of SharePoint Online. It’s so much more than just cloud storage; it’s a powerful Microsoft platform where your team can come together to share, create, and get work done, no matter where they are.

What Is SharePoint Online, Really?

Think of it as your company's digital nervous system. It’s a central hub built to store, organise, and distribute information across your entire business, making sure everyone is on the same page. As a key part of the Microsoft 365 family, it's designed to be the definitive source for your company's important files and knowledge.

At its heart, SharePoint plays three main roles for a business. It’s a smart and secure library for all your files. It’s a private intranet for your company communications. And it’s a dedicated workspace for team projects.

The Three Core Roles of SharePoint

These three functions don't work in isolation; they connect to create a single, cohesive digital workplace. Getting your head around each one is the best way to see the real value SharePoint can bring to a UK business.

  • A Smart File Library: This goes way beyond a standard network drive. SharePoint gives you powerful features like version history for documents, the ability for multiple people to edit a file at the same time (co-authoring), and a search that actually finds what you're looking for. No more "Final_v2_final_final.docx" confusion.

  • A Private Company Intranet: You can easily create internal websites—or 'portals'—to act as a central noticeboard for company news, HR resources, policies, and important announcements. It's a fantastic tool for building a sense of community and making sure everyone can find critical information quickly.

  • An Integrated Workspace: Specific departments or project teams can get their own 'Team Site'. This is a self-contained area where they can manage tasks, use shared calendars, and collaborate on documents relevant only to them. It keeps everything organised, secure, and out of everyone else's way.

The diagram below really helps to visualise how these different elements all plug into the central SharePoint platform.

As you can see, SharePoint isn't just a passive storage locker; it's an active hub for communication, file management, and teamwork. It has become a cornerstone for UK businesses, with around 187,000 companies having access through their Microsoft 365 subscriptions. What's really telling is that 74% of these users are small businesses, proving just how vital it is for SME productivity and collaboration right across the country.

Exploring the Core Features of SharePoint

To really get a grip on what SharePoint Online is, you have to look past the high-level concept and dive into the practical tools that make it so indispensable for UK businesses today. These features are the nuts and bolts of a more connected, efficient workplace. Let's walk through them with some real-world examples to see how they actually work.

At its heart, SharePoint is all about bringing order to the usual chaos of company files and information. It does this by creating structured, purpose-built spaces for different business needs, all neatly plugged into the Microsoft 365 ecosystem.

Document Libraries: The Secure Filing Cabinet

The most fundamental feature is the Document Library. It’s easy to think of it as a shared drive, but it’s really a supercharged version with far more intelligence and control built-in. This is where you store, organise, and share files, but with critical business-grade features that a standard network drive just doesn't have.

For instance, a marketing agency in Manchester could use a Document Library to manage all its campaign materials. When a designer uploads a new brochure draft, they aren't just saving a file; they're tapping into version control. This means every previous iteration is automatically saved, allowing the team to roll back to an earlier draft in seconds if a change doesn't work out. It’s the end of file names like "brochure_v3_final_final_USE-THIS-ONE.docx".

A Document Library cuts out the guesswork. It creates a single source of truth, making sure everyone works from the most current document while keeping a full history of changes for accountability.

This feature alone dramatically reduces errors and wasted time, ensuring project files are managed securely and sanely from start to finish.

Communication Sites: Your Company Megaphone

While Document Libraries are for the 'doing', Communication Sites are for the 'telling'. These are basically easy-to-create, visually appealing internal websites designed to broadcast information to a wide audience across your business.

Think of a national charity with offices in London, Bristol, and Edinburgh. They could use a Communication Site as their central intranet to publish:

  • Company News: Announcing fundraising successes or welcoming new starters.
  • HR Policies: A single, easy-to-find home for employee handbooks and holiday request forms.
  • Event Calendars: Keeping everyone in the loop about upcoming training days or team events.

The beauty is that these sites are mobile-friendly and look professional right out of the box, no web developer needed. They’re brilliant for building company culture and making sure key messages reach every member of staff, wherever they are.

Team Sites: The Collaborative Project Room

Where Communication Sites broadcast information outwards, Team Sites are built for close-quarters collaboration within a specific group. Each Team Site is a private, dedicated workspace where a department or project team can share files, manage tasks, and communicate in a focused environment.

Imagine a construction firm in Nottingham managing a major building project. They can set up a SharePoint Team Site accessible only to the project managers, architects, and on-site supervisors. In this secure hub, they can:

  • Store and co-author blueprints and planning documents.
  • Track project milestones with shared calendars and task lists.
  • Manage safety protocols and incident reports in a controlled way.

This approach keeps all project-specific information contained and organised, stopping sensitive data from getting lost in endless email chains or saved on personal drives.

Lists and Automation: The Smart Organisers

Beyond sites and libraries, SharePoint Lists offer a simple but surprisingly powerful way to track information. Think of them as smart spreadsheets that can be customised to manage almost anything, from IT assets to customer feedback. A local retailer could use a List to manage stock levels, even setting up alerts for when an item is running low.

This gets even more potent when you connect it with automation tools. For any business looking to iron out its processes, it's worth checking out our guide on what is Power Platform, as it plugs directly into SharePoint to automate workflows. For instance, you could automatically notify a manager every time a new entry is added to a customer feedback List.

Seamless Microsoft 365 Integration

Perhaps SharePoint's biggest strength is how deeply it’s woven into the rest of Microsoft 365. It isn't a standalone product; it's the content engine that powers collaboration across the entire suite.

This deep integration is why around 72% of UK workforces use at least two connected apps like SharePoint, Teams, and OneDrive every week. It simplifies how people work and boosts efficiency, making cloud services essential for the 96% of UK organisations now using them. You can explore more on this by reading up on Microsoft 365 productivity statistics. Ultimately, this interconnectedness creates a truly unified digital workplace where information flows securely between the tools your team uses every day.

The Real Business Benefits for UK Companies

Knowing what SharePoint can do is one thing, but understanding what it can do for your business is what really matters. So, why should a UK company invest time and resources into this platform? The answer isn't in the features themselves, but in the genuine, measurable impact they have on everything from day-to-day productivity to the security of your most valuable data.

For most businesses we work with, the first thing they notice is how much more productive their teams become. Just think about all the wasted minutes and hours your staff lose searching for the latest version of a document, digging through old email chains, or trying to find a file on a cluttered network drive. SharePoint puts an end to that chaos.

By creating a single, central source of truth for all your information, everyone on the team knows exactly where to go. Features like real-time co-authoring are a game-changer; multiple people can work on the same report or proposal at the same time, seeing each other's edits as they happen. This kind of collaboration slashes review cycles and gets projects over the line faster.

Strengthening Security and Compliance

In an era of tight data protection regulations here in the UK, security is no longer just an IT headache—it's a critical business function. SharePoint Online is built on Microsoft's enterprise-grade cloud infrastructure, giving you a powerful shield for your company's information. It offers granular permissions management, letting you decide precisely who can view, edit, or share specific files, folders, or even entire sites.

This level of control is vital for protecting sensitive client data or confidential internal documents. On top of that, SharePoint keeps detailed audit trails that log who accessed or changed a file, and when. This isn't just useful for investigating a security issue; it's invaluable for proving you're complying with UK data protection laws.

By bringing all your data into SharePoint, you effectively close the door on risky 'shadow IT' practices like staff using personal file-sharing accounts or emailing sensitive documents. This massively reduces your risk of a data breach and helps you meet your legal obligations.

These built-in security features give you the confidence that your company's most important asset—its data—is properly protected.

Creating a Centralised Knowledge Hub

Every business has a goldmine of knowledge locked away in the minds of its employees. The problem is, that knowledge often walks out the door when someone leaves. SharePoint gives you a way to capture that expertise and build a permanent, central knowledge hub for your entire company.

You can set up sites to document company processes, archive project histories, store training materials, and share best practices. When a new person joins, their onboarding is so much smoother because everything they need to get up to speed is organised in one easy-to-find place. This not only makes training more efficient but also empowers everyone to find answers for themselves, creating a more capable and self-sufficient workforce.

Boosting Your Bottom Line Through Automation

One of SharePoint's most direct financial benefits is its ability to automate all those small, time-sucking tasks that add up. Because it works so closely with Microsoft Power Automate, you can set up simple workflows that handle repetitive jobs without anyone needing to lift a finger.

Just think about these common scenarios:

  • Document Approvals: Automatically send a draft contract to the right manager for sign-off the moment it's uploaded to a library.
  • Notifications: Ping the sales team whenever a new lead is added to a SharePoint list.
  • Data Collection: Use a simple form for holiday requests that, once filled out, automatically updates the shared team calendar.

Every little task you automate frees up your team to focus on the high-value work that actually grows your business. When you multiply that time-saving across the whole company, the return on investment becomes clear. The financial impact can be huge; a small UK business with 150 staff that adopts Microsoft 365 can see a financial benefit of over £415,000 over three years, largely driven by these productivity gains. Find out more about the projected 223% ROI of this ecosystem for UK businesses.

To explore how these benefits could apply to your specific business needs, phone 0845 855 0000 today or send us a message to speak with one of our experts.

Understanding SharePoint Security and Governance

For any UK business, protecting your data isn't just a box-ticking exercise; it's fundamental to your reputation and legal standing. SharePoint Online is built with this reality in mind, offering powerful, layered security and governance features that protect your information without getting in your team’s way. Getting to grips with these controls is the key to using the platform confidently and safely.

Right out of the box, SharePoint sits on Microsoft's secure cloud infrastructure, which means it benefits from round-the-clock monitoring and security updates. But the real control is in your hands. It all starts with deciding exactly who can see and do what with your company’s information.

Mastering Permissions Management

One of the cornerstones of SharePoint security is permissions management. The best way to think about it is like a set of digital keys. You wouldn't hand every employee a key to the managing director's office, and the same logic applies to your digital files. SharePoint gives you the power to set access rights at incredibly specific levels, ensuring people only see what they need to for their job.

This granular control works on several tiers:

  • Site Level: You can give the entire finance team access to their dedicated site, while the marketing department won't even know it exists.
  • Library/List Level: Within that finance site, you might decide that only the HR and finance managers can access the ‘Payroll’ document library.
  • Folder or File Level: For a highly sensitive document, like a draft acquisition plan, you can lock it down so only a few named individuals can open it.

This structure gives you complete control, from the broadest company-wide portal right down to a single confidential spreadsheet. It’s a foundational piece of good information security and a core part of any effective security risk management strategy.

Essential Security Layers

Beyond just permissions, SharePoint Online has several other crucial security features working behind the scenes to keep your business safe. These aren't add-ons; they're baked right into the platform.

A big one is Multi-Factor Authentication (MFA). This adds a simple but vital layer of protection by asking users to prove their identity with a second method—like a code sent to their phone—in addition to their password. It's a straightforward step that makes it exponentially harder for an attacker to get in, even if they've stolen a password.

On top of that, all your data is protected by encryption. This means your files are scrambled into unreadable code both when they're being sent over the internet (in transit) and when they're stored on Microsoft's servers (at rest). It’s a powerful safeguard against data breaches.

Building a Strong Governance Plan

Having the best security tools is one thing, but you also need a clear plan for how to use them. That's where governance comes in. A governance plan is simply a set of rules and policies for how your company uses SharePoint. It’s what stops it from becoming a messy, insecure digital dumping ground over time.

A good governance plan isn't about restricting people; it's about providing a clear framework that makes it easy for everyone to do the right thing. It transforms SharePoint from a simple tool into a well-managed business asset.

Your plan should outline key policies from day one. Think about things like who can create new sites, what the naming conventions for files and folders should be, and how long different types of documents should be kept. To make sure your SharePoint setup is fully aligned with your business's legal duties, it's worth considering your approach to building a modern compliance risk management framework. For more advanced requirements, SharePoint also works with Microsoft Purview, which provides sophisticated tools for Data Loss Prevention (DLP) and compliance to help automatically find and protect sensitive data like financial records or personal details.

To get expert help in creating a secure and well-governed SharePoint environment for your business, phone 0845 855 0000 today or send us a message to speak with our specialists.

Choosing the Right SharePoint Plan and UK Pricing

Figuring out Microsoft 365 licensing can feel like a maze, but getting the right SharePoint plan is usually simpler than you’d think. For most UK small and medium-sized businesses, the smartest and most cost-effective route isn't buying SharePoint on its own. It's getting it as part of a Microsoft 365 for Business subscription.

This bundled approach is fantastic value. You don't just get SharePoint; you get a whole toolkit for your business, including Teams for communication, Exchange for professional email, and OneDrive for personal storage. It’s a complete digital workplace from a single, predictable monthly payment per user, making it easy to budget for and scale as your team expands.

Comparing Popular Microsoft 365 Business Plans

To make the right call, it helps to see what you get with the most common plans that include SharePoint. Each one is tailored to slightly different business needs.

  • Microsoft 365 Business Basic: This is the perfect entry point. You get professional email, cloud file storage, and the web-based versions of Office apps. Crucially, it includes the full power of SharePoint Online for building your intranet and collaborating on files. Current UK pricing is around £4.90 per user/month.

  • Microsoft 365 Business Standard: This plan gives you everything in Business Basic, plus the full downloadable desktop versions of Office apps like Word, Excel, and PowerPoint. It’s the go-to choice for businesses where staff need the advanced features of these applications on their PCs and Macs. Expect to pay around £10.30 per user/month.

  • Microsoft 365 Business Premium: Building on the Standard plan, this top-tier option adds a serious layer of advanced security and device management. With tools like Microsoft Defender and Intune included, it's the best fit for companies handling sensitive data or needing to secure company devices properly. The estimated UK price is £18.10 per user/month.

When you're mapping out your budget, a general software license cost calculator can be a really useful tool for looking at the bigger picture of your tech investments.

When to Consider Standalone SharePoint Plans

While the bundles are usually the best bet, there are a few specific situations where buying SharePoint on its own might be the right move. Microsoft offers these plans for organisations with very particular requirements.

Imagine a company that’s already happy with its email provider and has existing Office app licences. If they just want to bring in SharePoint for its fantastic intranet and document management features, a standalone plan makes perfect sense. It stops you from paying for tools you simply don't need.

The standalone options generally come in two flavours:

  • SharePoint Online (Plan 1): This covers all the core features a small or medium business needs, like team sites, document libraries, and 1 TB of OneDrive storage. This plan currently sits at about £4.10 per user/month.

  • SharePoint Online (Plan 2): You get everything in Plan 1, but with added enterprise-grade tools like Data Loss Prevention (DLP) and more powerful search functions. This is aimed at larger organisations with strict compliance and security needs. It's priced at approximately £8.20 per user/month.

For the vast majority of UK SMEs, though, the incredible value packed into the Microsoft 365 Business bundles makes them the most logical and financially sound way to get started with SharePoint Online.

To get help choosing the perfect plan for your business needs and budget, Phone 0845 855 0000 today or Send us a message.

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Your Roadmap to a Successful SharePoint Rollout

Jumping into SharePoint can feel like a huge project, but with a clear roadmap, it’s a much smoother and more rewarding process. Getting this right isn't just about flipping a switch on new software; it's about smart planning, a seamless transition, and getting your team excited about a better way to work. Follow the right path, and you'll quickly see the real value of what SharePoint Online is and a fantastic return on your investment.

We always break the journey down into three key phases: strategic planning, careful migration, and championing user adoption. Nailing each one is absolutely vital for long-term success.

Step 1: Planning and Governance – The Blueprint

Before a single file gets moved, the most critical step is figuring out why you're doing this. What's the end goal? Are you trying to lock down document security, create a central hub for company knowledge, or simply make project collaboration less chaotic? Answering these questions first will guide every decision you make later on.

This is also the moment to lay down the law with a solid governance plan. Think of it as the rulebook for your new digital workspace. It covers the essentials, like:

  • Who gets to create new sites and when.
  • What your company-wide naming conventions for files and folders will be.
  • How long you need to keep different types of information.

Setting these ground rules from day one prevents your shiny new SharePoint from descending into a disorganised mess. It keeps things secure, tidy, and manageable as your business grows.

Step 2: Migrating Your Data – The Big Move

With a solid plan in your back pocket, it's time to start moving your existing files into SharePoint Online. This could mean pulling data from an old server in the office, consolidating files from different cloud services, or a bit of both. The trick to a good migration is bringing over only the clean, relevant data and leaving the junk behind.

This is a delicate operation. You need to be sure no data gets lost and that all the old file permissions are mapped correctly to your new SharePoint setup. This is where having an expert partner like F1 Group really pays off. We handle the technical heavy lifting, de-risking the whole process and ensuring a secure, seamless transfer of your company's information.

Step 3: User Adoption and Training – Making It Stick

This is it—the final and most important piece of the puzzle. A new platform is useless if your team doesn't actually use it. This is all about change management and showing people what's in it for them. Good training isn't a generic tutorial; it’s about demonstrating how SharePoint solves the real-world problems your staff face every day.

Consistent support and clear communication are key to building confidence and getting everyone on board. When you invest in your team's learning, SharePoint stops being "just another piece of software" and becomes a core part of how you do business. At F1 Group, we take care of the tech so you can focus on what you do best: leading your team through the change.

Ready to build a personalised roadmap for your business? Let's talk.

As you can see, getting in touch is straightforward. To start your SharePoint journey on the right foot, just reach out.

Call us on 0845 855 0000 today or send us a message to see how we can help.

Frequently Asked Questions About SharePoint Online

To wrap things up, let's tackle a few of the most common questions we hear from UK businesses trying to figure out if SharePoint Online is the right fit for them.

What Is the Main Difference Between SharePoint and OneDrive?

This is a great question, and the simplest way to think about it is with a "My Documents" vs. "Shared Drive" analogy.

OneDrive is your personal work locker in the cloud. It’s the perfect place to store your own files, draft documents, and manage things that are primarily yours.

SharePoint, on the other hand, is the company’s shared library and collaboration space. It's built for teams to store, find, and work on files together. While you can share a file from OneDrive, SharePoint is designed from the ground up for group work, with powerful features like team sites, company intranets, and granular permission controls that OneDrive just doesn't have.

Do I Need to Be a Technical Expert to Use SharePoint Online?

Not at all, especially not for everyday tasks. Microsoft has put a lot of effort into making the modern SharePoint experience intuitive. If you can drag and drop a file or update a social media page, you have all the skills you need to upload documents and collaborate with your team.

While the initial setup, security configuration, and ongoing governance definitely benefit from an expert hand, using the platform day-to-day is designed to be straightforward for everyone.

This is exactly where a partner like F1 Group steps in. We handle the complex backend configuration, so your team gets a simple, powerful tool that just works.

Is SharePoint Online Suitable for a Very Small Business in the UK?

Absolutely. In fact, it can be a game-changer for smaller businesses. Because it’s bundled into most Microsoft 365 business plans, even a sole trader or a team of 2-5 people can access enterprise-level document management and collaboration tools without the enterprise price tag.

It gives you a secure, central hub for all your important files, accessible from anywhere. This immediately stops risky habits like emailing sensitive files back and forth or using personal cloud storage for company data, setting a professional and secure foundation right from the start.

How Can F1 Group Help My Business with SharePoint?

We offer the full package. Our support for SharePoint Online starts with a simple conversation to understand your business goals, which allows us to design and plan a solution that genuinely solves your problems.

Our team then manages the entire technical side of things – from the initial setup and secure configuration to migrating all your data from older systems.

Just as importantly, we provide hands-on training for your staff and offer ongoing managed support to make sure you’re always getting the most from your investment. We handle the complexity so you can concentrate on what you do best: running your business.


Ready to see what SharePoint can really do for your business? The expert team at F1 Group is here to help you plan, deploy, and manage a solution that delivers real results.

Phone 0845 855 0000 today or Send us a message to start the conversation.