What is SharePoint? A Guide for Businesses in 2025

Would your organization save millions if every document, idea, and project update was always at everyone’s fingertips, securely, anywhere? The answer is no longer hypothetical. This is what Microsoft SharePoint brings to many of the world’s largest enterprises—now used by over 85% of Fortune 500 companies (Microsoft, 2024). 

What SharePoint Solves Right Away 

Most people who ask, “What is SharePoint?” are trying to fix problems with lost files, compliance issues, or slow teamwork. Usually, this question comes up after a document goes missing or when leaders notice that siloed information slows down decisions and innovation. 

Microsoft SharePoint brings documents, communication, and business processes together in one place. It’s a single platform that connects to Microsoft 365 and is trusted for content management around the world. The SharePoint benefits for companies are clear from the moment you use it. 

A Short Look at SharePoint’s History 

SharePoint has been around since 2001 as a Microsoft web-based application. It helps organizations store and organize all sorts of content—documents, images, videos, news, links, lists, web pages, and tasks. Over time, Microsoft SharePoint evolved through versions like SharePoint 2003, 2007, 2010, 2013, 2016, and 2019. Most organizations now use SharePoint Online, which is always up to date and part of Microsoft 365. 

Since 2012, SharePoint Online has meant that companies no longer need to manage servers. Instead, SharePoint is available as a subscription (you just sign in and use it, like you use your email). This makes Microsoft SharePoint accessible to more businesses, including those with small IT teams or limited budgets. 

Classic SharePoint and Modern SharePoint 

SharePoint’s look and structure have changed. In 2017, Microsoft redesigned it, creating what is now called Modern SharePoint. It moved from the old “subsite” model to a “flat architecture” (each site stands alone). This makes it easier to manage permissions and connect sites. Classic SharePoint to Modern SharePoint also looks and feels more current, and it’s simpler for everyone to use. 

Classic SharePoint sites still exist, but new projects benefit from the improved navigation, editing, and page-building of Modern SharePoint. 

Types of SharePoint Sites: What They Are and When to Use Them 

When you create a site in SharePoint, you have several options. Each type serves a different business need. Choosing the right one matters for permissions, design, and which Microsoft 365 tools you can use. 

Team Site 

A Team Site is for two-way collaboration—think of a workgroup, project team, or department. When you create a Team Site, you also get a Microsoft 365 Group and connected apps (Group Calendar, Teams, Planner, and a Distribution List). 

You can also get a Team Site when you create a Team in Microsoft Teams or a Plan in Planner—these are all connected in the background. 

Examples of Team Sites: 

• A project team site for planning a product launch, storing files, sharing notes, and tracking tasks. 
• A department site for HR to manage policies, vacation schedules, and onboarding resources. 
• A site for a regional sales team to store presentations, track leads, and share updates. 

Communication Site

A Communication Site is for one-way sharing of information—think of an intranet, a hub for announcements, or resources for the whole company. 

When you create a Communication Site, you get a wide layout, navigation at the top, and no Microsoft 365 Group or extra apps. It’s good for sharing news or resources, not for team collaboration. 

Examples of Communication Sites: 

• A company-wide intranet with news, CEO messages, and links to HR forms. 
• An IT department site for software updates, help desk contacts, and FAQs. 
• An employee resource portal with training guides and benefit information. 

Team Site Without a Group 

There’s also a Team Site without a Group. This is like a regular Team Site but doesn’t create a Microsoft 365 Group. IT creates these from the SharePoint Admin Center. If you want the layout of a Team Site but don’t need connected apps, this is a good fit. 

 If you change your mind later, you can “upgrade” it to include a Group. 

Examples:

• A document storage site for a special project, where only a few people need access. 
• An archive site for old legal documents, with strict permissions and no need for chat or shared calendars. 

Channel Sites 

When you create a private or shared channel in Microsoft Teams, SharePoint automatically creates a new site just for that channel. These sites are focused on document storage and have different permissions from regular Team Sites. You can’t manage these like normal sites—they’re tightly linked to Teams. 

Examples: 

• A private channel for a leadership group within a larger Team, storing confidential files. 
• A shared channel for a cross-company project, with its own document library. 

SharePoint Document Libraries

Every SharePoint site (team or communication) usually has at least one document library. This is where you store, organize, and share files. 

You can create folders, add metadata (like project names or due dates), and set permissions at the folder or document level. 

Examples of Document Libraries: 

• A library in a project team site for all project files, grouped by phase or deliverable. 
• A policy document library in the HR communication site, tagged by document type and review date. 
• A marketing asset library, storing images, presentations, and brand guidelines. 

SharePoint Features: Four Core Capabilities 

Document Storage and Management 

• Microsoft SharePoint is trusted for secure, organized document storage. 
• Files are easy to find, thanks to metadata, version history, and smart search. 
• Tools like check-in/check-out, co-authoring, and access control keep files safe and up to date. 
• SharePoint Document Management System lets you automate document workflows, so approvals and reviews happen faster. 
•  Encryption, permissions, and compliance tools help you protect sensitive data. 

SharePoint benefits here include always knowing where your files are and never worrying about lost versions. 

Team Collaboration Capabilities 

SharePoint is a real SharePoint collaboration tool. 

• Team Sites connect people for joint editing, shared calendars, task tracking, and discussion. 
• You can tag files, create custom lists (for projects, contacts, or issues), and work together in real time—even from different locations. 
• Integration with Teams and Outlook links conversations and documents. 
• With custom SharePoint development, you can build dashboards, automate processes, and connect SharePoint to your CRM or HR systems. 

SharePoint features here give teams everything in one place, removing barriers to working together. 

Intranet and Communication Tools 

• Communication Sites and document libraries are core SharePoint features for company-wide sharing. 
•  Build intranet portals for news, events, and resources with easy navigation and clear permissions. 
•  Use SharePoint as a knowledge base or wiki—employees can find policies, guides, or procedures quickly. 
•  Every Team in Microsoft Teams gets its own SharePoint site, storing meeting notes, shared files, and OneNote notebooks. 

SharePoint benefits for internal communication include making sure everyone knows where to find important information—no more hunting through emails. 

Workflow Automation and Integration with Microsoft 365 

Microsoft SharePoint works deeply with the rest of Microsoft 365. 

• Use Power Automate to automate approvals, notifications, and document routing. 
•  Connect SharePoint with major business systems—like Salesforce, SAP, or custom apps—using SharePoint integration. 
•  You can move to SharePoint Online with SharePoint migration services, which handle planning, data transfer, and user training. 

SharePoint features here let you automate manual tasks and keep all your business data connected. 

SharePoint Benefits: Security, Flexibility, and Growth 

• Secure document management with encryption and permissions 
• Easy collaboration across teams and locations 
• Flexible site types for every use case 
• Powerful integration with Microsoft 365 and third-party tools 
• Ongoing updates and support with SharePoint support and maintenance 

Best Practices for Success 

• Set up clear site structures and permissions 
• Use metadata and tags for easy search 
• Train users and keep them updated 
• Regularly review your setup with SharePoint consulting 

Why SharePoint Remains Indispensable 

Microsoft SharePoint is more than just a document storage tool. 

It’s a SharePoint collaboration tool, an intranet, a workflow engine, and a platform for secure, connected work. 

With the right setup, SharePoint features and SharePoint benefits can help any organization work smarter, move faster, and stay secure. 

Conclusion 

SharePoint is the practical answer to today’s content chaos. It gives you secure, easy, and scalable collaboration for any size business. Every SharePoint feature, every SharePoint benefit, and every solution—always within reach.