Synology Drive vs SharePoint: Choosing the Right File Platform for Your Business
A balanced comparison of Synology Drive and Microsoft SharePoint for small business file storage. Learn where each platform excels and when a hybrid approach makes the most sense.

Key Takeaway
SharePoint is a cloud-first collaboration platform optimized for real-time document editing. Synology Drive is a local-first file server optimized for large file performance. Many businesses benefit from using both together in a hybrid strategy.
The choice between Synology Drive and Microsoft SharePoint depends on your specific workflow needs. SharePoint excels at office document collaboration with Teams integration. Synology Drive excels at handling large creative assets with local network speed. This guide provides a balanced comparison to help you decide which platform fits your business—or whether a hybrid approach makes the most sense.
| Criteria | SharePoint | Synology Drive |
|---|---|---|
| Best For | Office documents, Excel collaboration, distributed teams | Large files (CAD, video), local network performance |
| Pricing Model | Per-user subscription ($7-$22/user/month, paid yearly) | One-time hardware cost + drives, no per-user license |
| Real-Time Co-Authoring | Excellent (Word, Excel, PowerPoint) | Real-time co-editing in Synology Office files; Microsoft Office files are converted or use file locking |
| AI Features | Microsoft 365 Copilot (paid add-on or bundle) | AI search in Drive through Synology AI Console (requires a connected AI provider or supported hardware) |
| Maintenance | Zero (Microsoft-managed) | Requires in-house IT or MSP |
| Ransomware Protection | Version history and library restore (last 30 days) | Immutable snapshots (supported models) |
What is the main difference between SharePoint and Synology Drive?
SharePoint is a cloud-first platform optimized for real-time collaboration, while Synology Drive is a local-first server optimized for large file performance.
Microsoft's architecture streams files on demand, meaning data resides in the cloud until accessed. This enables seamless co-authoring in Office apps but introduces latency for heavy assets. Synology stores files on your local network (LAN), providing fast access for workflows like video editing or CAD, but requires additional setup for remote access.
What is SharePoint?
SharePoint: Collaboration Strengths
- Real-time co-authoring in Word, Excel, and PowerPoint
- Native Teams integration for document sharing
- Microsoft Search indexing across all 365 services
- Microsoft 365 Copilot AI assistance (sold separately or as a Copilot bundle)
Synology Drive: Performance Strengths
- Fast LAN access for large file workflows (2.5GbE built in on the DS925+; 10GbE needs a model or expansion card that supports it, such as the DS1825+ with a 10GbE card)
- Complete data sovereignty on owned hardware
- No recurring per-user licensing fees
- Integrated backup via Active Backup for Business
Synology Drive Introduction
Which platform is better for CAD and video editing?
Synology Drive outperforms SharePoint for creative workflows by eliminating cloud latency during file operations.
Opening a large model file from SharePoint means the file must be downloaded from Microsoft's servers (unless it is already synced locally), so the delay depends on your internet speed. A Synology NAS on a wired LAN serves the same file at local network speed. For industries relying on large binary files—such as architecture, engineering, and video production—local storage is often the better technical fit.
Large File Performance: SharePoint vs Synology
| Scenario | SharePoint | Synology Drive |
|---|---|---|
| Opening a large CAD file | Depends on internet speed unless already synced | Local network speed |
| Saving large video project | Upload speed dependent | Written over the LAN |
| Multiple users, same library | Sync conflicts possible | Depends on locking and workflow |
| Internet outage | Synced files stay available offline; others do not | Local access continues on the LAN |
SharePoint's Practical Limits
Microsoft supports files up to 250 GB in SharePoint and OneDrive. Large-file performance depends on your connection speed.
The 300,000 item sync recommendation is a limit worth planning around. Microsoft recommends syncing no more than 300,000 files in a single library, and notes that performance issues can occur at 300,000 items or more across all libraries you sync, even if you do not sync every item. Larger libraries may need a different folder structure or a separate storage location for overflow.
| SharePoint Guideline | Threshold |
|---|---|
| Max file size | 250 GB |
| Sync recommendation | No more than 300,000 items (soft limit) |
| Library size | Up to 30 million files and folders |
| Path character limit | 400 characters (entire decoded path) |
Synology Drive's Remote Access Limitations
Synology Drive performance over WAN is limited by your upload bandwidth. With typical business fiber connections (symmetric gigabit), remote users can expect reasonable sync speeds, but performance varies based on:
- Your office's upload bandwidth capacity
- Router configuration and port forwarding
- Distance from the NAS location
- File size and sync frequency
For distributed teams where most users work from different locations, SharePoint's always-online architecture often provides a more consistent experience.
How does pricing compare: Subscription vs Hardware?
SharePoint follows a recurring monthly operational expense (OpEx) model, whereas Synology represents a one-time capital expenditure (CapEx).
SharePoint: Monthly Subscription Costs
Microsoft 365 pricing includes email, Teams, Office apps, and SharePoint storage:
| Plan | Price | Storage |
|---|---|---|
| Business Basic | $7/user/month, paid yearly | 1 TB per user |
| Business Standard | $14/user/month, paid yearly ($16.80 on a monthly subscription) | 1 TB per user |
| Business Premium | $22/user/month, paid yearly ($26.40 on a monthly subscription) | 1 TB per user |
US list prices from Microsoft's plan pages, checked October 27, 2026. Copilot bundles cost more (Business Standard with Copilot is $23.50 per user per month, paid yearly).
Example: 10 users over 5 years (Business Standard, paid yearly)
- 5-Year Total: $8,400 ($14 x 10 users x 60 months)
- Includes: Email, Teams, Office apps, SharePoint storage
Many businesses already pay for Microsoft 365 for email and productivity apps, so SharePoint storage is already included in what they pay.
Synology Drive: Upfront Hardware Investment
| Component | Cost |
|---|---|
| Synology DS925+ | About $640-$830, depending on retailer |
| 4x 8TB Seagate IronWolf HDDs | ~$480 (estimate) |
| Initial setup (if using MSP) | ~$500 (estimate) |
| Annual maintenance | ~$600/year (estimate) |
| Drive replacement reserve | ~$200 (estimate) |
| 5-Year Total | ~$4,800-$5,000 (planning estimate) |
Hardware, setup and maintenance figures are illustrative planning estimates, not quotes; retailer prices vary.
Additional considerations:
- Professional setup recommended for non-technical teams
- Hardware requires physical space, power, and cooling
- Drives will eventually fail and need replacement
- Offsite backup (Synology C2 or second NAS) adds cost
Cost Context
Don't compare raw numbers without context. Microsoft 365 includes email, productivity apps, Teams, and storage. Synology provides only storage. Most businesses need both types of services—the question is whether Synology replaces SharePoint storage or supplements it.
What are the AI and security differences?
Microsoft 365 Copilot brings AI assistance to SharePoint documents, while Synology offers immutable snapshots on supported models as a stronger safeguard against deletion by a compromised admin account.
AI Integration: SharePoint vs Synology
| AI Feature | SharePoint | Synology Drive |
|---|---|---|
| Document AI | Microsoft 365 Copilot (summarize, draft, analyze), licensed separately | No Copilot-style drafting for Office documents |
| Search AI | Microsoft Search across 365 services | Keyword search; AI-powered search in Drive through Synology AI Console |
| Photo AI | Not a focus of SharePoint | Synology Photos face and subject recognition on supported models |
Microsoft 365 Copilot is a significant advantage for SharePoint in 2026. Users can ask Copilot to summarize documents, draft content, and analyze data in files stored in Microsoft 365, but it requires a Copilot license on top of the base plan. Synology AI Console (DSM 7.2 or later, on supported models) adds AI-powered search, OCR and similar features to Synology Drive by connecting third-party AI providers, and recommends at least 16 GB of system memory; it does not offer an equivalent to Copilot for drafting Office documents.
Ransomware Protection: SharePoint vs Synology
| Protection Feature | SharePoint | Synology Drive |
|---|---|---|
| Version history | Up to 500 major versions by default | Configurable retention |
| Point-in-time restore | Library or OneDrive restore to a point in the last 30 days | Restore from snapshots or Drive versions |
| Immutable snapshots | Not a SharePoint feature; retention policies and holds available in some plans | Immutable snapshots (WORM) on supported models |
| Offsite backup | Data is stored in Microsoft's cloud, not a separate backup | Requires C2 or second NAS |
Synology's immutable snapshots are a useful differentiator for ransomware defense. Once enabled on a supported model (DSM 7.2 or later), these write-once-read-many (WORM) snapshots cannot be removed during their protection period, even by administrators. SharePoint's library restore (up to 30 days) is easy for end users to run, and Microsoft 365 plans differ in the retention and backup options they include, but it does not work the same way as an immutable snapshot on your own storage.
SharePoint vs Synology: Feature Comparison
SharePoint Pros and Cons
Pros:
- Real-time co-authoring for Word, Excel, PowerPoint
- Native Teams and Outlook integration
- Microsoft 365 Copilot AI assistance
- Zero infrastructure maintenance
- Compliance tools such as retention policies, DLP and eDiscovery (availability depends on the plan)
- Consistent experience for distributed teams
Cons:
- Per-user recurring costs add up over time
- The 300,000-item sync recommendation can cause issues for very large libraries
- Large files depend on internet speed
- Permission management can become complex
Synology Drive Pros and Cons
Pros:
- High-speed LAN access for large files
- No per-user licensing fees
- Complete data sovereignty
- Immutable snapshots for ransomware protection
- Integrated PC/server backup
- Works offline without internet
Cons:
- Real-time co-editing works in Synology Office files, but Microsoft Office files are converted or locked rather than co-authored
- Requires IT expertise for setup and maintenance
- Remote access limited by upload bandwidth
- AI features need Synology AI Console with a connected AI provider and no Copilot equivalent for Office documents
- Hardware eventually needs replacement
Can you use SharePoint and Synology together?
Yes, a hybrid approach allows businesses to use SharePoint for administrative documents and Synology for production files.
This strategy segments data by type. Administrative teams (HR, Finance) utilize SharePoint for real-time co-authoring in Excel and Word. Creative or engineering teams map a Synology NAS as a local network drive for fast access to design assets. This prevents large media files from consuming SharePoint sync bandwidth.
Hybrid Implementation Strategy
In SharePoint:
- HR documents, policies, handbooks
- Finance spreadsheets and reports
- Sales proposals and contracts
- Documents requiring real-time collaboration
On Synology:
- Video production files and project assets
- CAD files and engineering drawings
- Photography archives and RAW files
- Database backups and system images
Making It Transparent to Users
- Mount Synology as a network drive (
Z:\Projectsor similar) - Keep SharePoint synced via OneDrive (Documents folder)
- Simple rule: "Large project files → Z: drive. Documents → normal save."
Who should choose SharePoint?
SharePoint is the right choice for businesses that prioritize real-time collaboration and use Microsoft 365.
Best fit:
- Work primarily involves office documents (Word, Excel, PowerPoint)
- Distributed teams working from multiple locations
- Real-time collaboration is essential
- Already paying for Microsoft 365 for email
- Zero infrastructure maintenance preferred
- Compliance features required (legal, financial, healthcare)
Industries: Law firms, financial services, consulting, sales organizations.
Who should choose Synology Drive?
Synology Drive is the right choice for businesses with large file workflows and centralized offices.
Best fit:
- Work involves large files (video, CAD, design assets)
- Most team members work from one or two locations
- Eliminating recurring storage fees is a priority
- Data sovereignty and local control matter
- IT resources available for on-prem hardware
- Integrated local backup needed for workstations
Industries: Architecture firms, video production, engineering, creative agencies.
Who should choose both?
A hybrid approach is optimal for businesses with mixed workflows across multiple departments.
Best fit:
- Mixed workflows (admin documents + creative assets)
- Different departments with different needs
- Safety net of local + cloud storage desired
- Budget allows NAS investment while keeping Microsoft 365
Final Verdict
The Right Choice for You
SharePoint wins for: Office document collaboration, distributed teams, Microsoft 365 integration, and AI-powered productivity with Copilot.
Synology Drive wins for: Large file workflows, local network performance, data sovereignty, and ransomware protection with immutable snapshots.
Hybrid approach: Many effective IT environments use SharePoint for admin/finance documents and Synology for production/creative assets. This matches each platform to its strengths.
Neither platform is universally superior. SharePoint excels at cloud collaboration and AI integration. Synology Drive excels at local performance and data control. The right choice depends on matching your workflow needs to each platform's strengths.
Related Resources
- Synology NAS Review 2026: Complete Business Guide
- Best NAS for Small Business
- Google Workspace vs Microsoft 365
- Synology Snapshots Explained
This comparison reflects product offerings and US pricing as checked on October 27, 2026. SharePoint features reference Microsoft 365 Business plans. Synology Drive features reference DSM 7.4 on Plus series models. Pricing and features may change.
Affiliate Disclosure: This article contains affiliate links. If you make a purchase through these links, we may earn a small commission at no extra cost to you. As an Amazon Associate, iFeelTech earns from qualifying purchases.
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