SharePoint is a platform that addresses a wide range of business needs: Collaboration, Portals, Enterprise Search, Enterprise Content Management, Business Forms, and Business Intelligence. A recent Info-Tech study found that 54% of organizations that decide to implement SharePoint do not consider any other vendor solutions in the decision-making process. SharePoint is built on the .NET framework, and is a logical choice for .NET shops. Because of this factor, the big decision that must be made when it comes to implementing SharePoint is the version, not the vendor. Windows SharePoint Services 3.0 (WSS) is the version that comes included with Windows Server 2003 (previous release WSS 2.0). Microsoft Office SharePoint Server 2007 (MOSS) is the version that enterprises must purchases licenses for (previous release SharePoint Portal Server 2003). The two most popular MOSS Client Access Licenses (CALs) are Standard and Enterprise.

SharePoint Version Adoption

Despite the fact that WSS comes free of charge for most enterprises, many are still opting to purchase MOSS. Adoption of the Server version is higher in enterprises deploying the solution for a larger number of users (see Figure 1 below).

Figure 1. SharePoint Adoption by Version

Source: Info-Tech Research Group

Although many organizations opt for WSS, many companies state that it is a gateway to MOSS. Approximately 49% of enterprises currently using either WSS 2.0 or 3.0 are either considering, evaluating, or planning to use a Server version of SharePoint. Added features, improved capabilities, and better integration are the top three cited reasons enterprises choose to upgrade.

Key Version Differences

The one common function available across all versions of SharePoint is collaboration. Not surprisingly, this is also the number one influencer that drives organizations to adopt SharePoint. WSS also provides core document management abilities and search capabilities. The MOSS standard CAL includes records management and Web content management with policies and workflow. The search of enterprise content and people is included, as well as the Portal functions. The MOSS Enterprise CAL builds on all of these capabilities and also includes Business Intelligence and Business Forms. (Please see Table 1 below.)

Table 1. SharePoint Version Comparison

Source: Microsoft

Version	Windows SharePoint Services 3.0 (WSS)	Microsoft Office SharePoint Server CAL (MOSS)	Microsoft Office SharePoint Server Enterprise CAL (MOSS)
Cost	Included with Windows Server 2003	$94/CAL	$169/CAL
Collaboration	Docs/tasks/ calendars, blogs, wikis, e-mail integration, project management “lite,” Outlook integration, offline docs/lists, surveys, people and group lists
Content Management	Document management	Integrated document management, records management, Web content management with policies and workflow
Search	Contextual reference	Extensible and customizable search of enterprise content and people	Business data, extensible and customizable search of enterprise content and people
Portal		Enterprise Portal template, Site Directory, My Sites, social networking, privacy control
Business Intelligence			Server-based Excel spreadsheets and data visualization, Report Center, BI Web Parts, KPIs/ Dashboards
Business Forms			Rich and Web forms based front-ends, LOB actions, enterprise SSO

*Please note that these costs do not take into account any volume licensing discounts and do not include the cost of the server software (approximately $4424).The above chart summarizes the three most commonly licensed SharePoint products. Alternatives include:

• SharePoint Server 2007 for Internet Sites. This software is used for Internet-facing Web sites. This license has all of the features of the Enterprise Edition of MOSS and is licensed on a per server basis and does not require the purchase of CALs.
• SharePoint Server 2007 for Search. Meets the core search needs of an enterprise. The standard edition is limited to indexing 500,000 documents, whereas the enterprise edition has no limit, depending on hardware.
• Microsoft Forms Server 2007. A product used to enable forms-driven business processes through the use of Microsoft Office InfoPath.

For an in-depth feature comparison across all versions of SharePoint, including SharePoint Portal Server 2003, see the Microsoft Office SharePoint Server 2007 products comparison download.

Key Considerations

Two key considerations should be evaluated when making the SharePoint version decision:

1. Total cost of ownership.

• License Costs. Organizations with tight budget constraints should pilot with WSS prior to investing in MOSS. The pilot enables IT to showcase the value of the tool to the business for relatively no cost. Once the pilot of WSS has been deemed a success, the company is in a better position to determine whether or not upgrading to MOSS will provide a positive return.
• Implementation. The more functions of SharePoint deployed, the more time and resources that must be allocated to IT training and implementation.
• Business involvement. Most companies implementing MOSS have a greater degree of business involvement, whereas 20% of companies implementing WSS do not involve the business at all. More time is required from the business when implementing MOSS.
• Support. Resources will need to be allocated to training and supporting end users. Due to the added functionalities deployed with MOSS, more resources will need to be allocated to training and supporting end users than with WSS.
• Cost per user. Organizations report the average total cost to implement WSS (including hardware and third-party support) is $36 per user. Conversely, the average cost to implement MOSS (including licenses, hardware, and third-party support) is $704 per user.

2. Functionality. The portal functionality provided in the server version of SharePoint has the biggest influence in terms of version decision making. Enterprises that have a need for a portal, either internal or external, often look to MOSS. Further, if the organization has a need to streamline forms-driven business processes or implement business intelligence capabilities, the enterprise CAL is chosen. Consider which functions of SharePoint will bring business value to the enterprise. Also, take a phased approach to the implementation. Rank functional components according to priority level and deploy the critical pieces first. Attempting to do too much too fast can result in poor design and end-user resistance. Further, keep in mind that certain functionalities will depend on the version of Microsoft Office deployed.

Bottom Line

A key decision in the planning process of a SharePoint deployment is to determine which version is the best fit. Enterprises planning to implement SharePoint should understand the key differentiators between product offerings in order to make the best strategic decision.