Dataverse vs. SharePoint: the right choice
When building solutions on the Power Platform, one of the first decisions you need to make is: where do I store my data? Dataverse and SharePoint are both powerful options, but they are designed for fundamentally different purposes. The wrong choice can lead to performance issues, security risks, or unnecessary costs. In this article, we help you make the right decision.
The core differences
Dataverse is a relational database specifically designed for business applications. It offers a structured data model with tables, columns, relationships, and business rules. SharePoint, on the other hand, is primarily a document management and collaboration platform. It excels at storing, sharing, and managing documents and files, but is not designed as a relational database.
The difference is comparable to that between a database and a file system. Both store data, but in a fundamentally different way and for different purposes.
When to choose Dataverse
Dataverse is the right choice when you work with structured, relational data that requires complex business rules. The platform offers a rich set of features that you will not find in SharePoint:
- Relational data: Complex relationships between entities with referential integrity and cascading behavior.
- Security model: Granular security at record, field, and organization level with security roles.
- Business rules: Server-side validation and automation without writing code.
- Audit trail: Complete audit logging of all changes to records.
- API access: Extensive REST APIs for integration with external systems.
Dataverse is essential when building model-driven apps, when integrating with Dynamics 365, or when sharing data between multiple Power Apps applications.
When to choose SharePoint
SharePoint is ideal for document-centric processes. If your primary need is storing, sharing, and collaborating on documents, SharePoint offers a richer experience than Dataverse. Specific scenarios where SharePoint is the better choice:
- Document libraries: Management of files with version control, check-in/check-out, and metadata.
- Team collaboration: Sharing files and information within teams and departments.
- Simple lists: For non-relational data such as contact lists, task lists, or inventories.
- Cost-effective: SharePoint storage is included in most Microsoft 365 licenses.
The choice between Dataverse and SharePoint is not a technical but an architectural decision. Always start with the question: what type of data am I managing and what operations do I need to perform on it?
Hybrid scenario: the best of both
In practice, the best approach is often a combination of both platforms. Use Dataverse for your structured business data and SharePoint for your documents. Dynamics 365 supports this pattern natively through SharePoint integration, where documents related to a Dataverse record are automatically stored in SharePoint but accessible from the Dynamics 365 form.
This hybrid model offers the best of both worlds: the relational power of Dataverse for your business logic and the document management capabilities of SharePoint for your files. Additionally, it limits your Dataverse storage costs, since files typically take up more space than structured data.
Cost and licensing considerations
Costs are an important factor in the decision. Dataverse storage is more expensive than SharePoint storage and is measured in three categories: database (structured data), file (attachments), and log (audit data). Each Dynamics 365 and Power Apps license includes a base amount of storage shared across the tenant.
SharePoint storage is included in Microsoft 365 licenses and offers significantly more space per license. For cost-conscious organizations, strategically using SharePoint for non-critical data can yield significant savings. At Breathbase, we advise clients to design a data architecture that optimally balances functionality, performance, and costs. Get in touch for a no-obligation consultation.
