SharePoint vs DMS: Do You Really Need Microsoft 365 for Document Management?

SharePoint vs DMS: Do You Really Need Microsoft 365 for Document Management?

SharePoint: Powerful, But Too Complex?

Microsoft SharePoint is a platform for collaboration, intranet, and content management. With Microsoft 365, millions of companies use it. But the question rarely asked is: do you really need all of SharePoint just to manage documents?

SharePoint can do a lot — but precisely because it can do so much, setup and maintenance is complex, expensive, and requires IT experts.

The Problem with SharePoint for Document Management

1. Complex Setup

To make SharePoint work as a DMS, you need to configure document libraries, metadata columns, workflows, permission levels, and retention policies. This requires a SharePoint administrator or consultant — for small and medium businesses, this is an unnecessary cost.

A DMS like Arhivix works out of the box — upload a document and the system automatically handles classification, retention, and access.

2. OneDrive vs SharePoint Confusion

Microsoft 365 comes with OneDrive (personal space) and SharePoint (team space). Employees often don't know where to store what. Documents end up in the wrong place, duplicates appear everywhere. A DMS has one central location for all documents — no confusion.

3. Search Requires Properly Configured Metadata

SharePoint search is powerful — IF documents are properly tagged with metadata. In practice, employees rarely fill in metadata fields. Result: search returns hundreds of irrelevant results. A DMS with AI automatically extracts metadata from document content — search works even without manual tagging.

4. No Localization for Local Regulations

SharePoint doesn't know about local archiving laws, office management regulations, or country-specific retention periods. Everything must be manually configured — retention labels, disposition reviews, compliance policies. A localized DMS has all of this built in.

5. Licensing Is Complex and Expensive

For full DMS functionality on SharePoint, you need a Microsoft 365 E3 or E5 plan. That's $25 to $57 per user per month. For a company of 50 employees, that's $1,250–$2,850 per month — just for licenses, without implementation. A specialized DMS costs significantly less.

6. No Built-in Electronic Signatures

Microsoft offers integration with Adobe Sign or DocuSign — but these are additional licenses and additional costs. A DMS with built-in e-signatures enables signing directly from the document workflow.

7. No Archive Ledger

SharePoint has no concept of an archive ledger — for companies with regulatory requirements, this means additional manual work or additional software. A DMS automatically generates archive records from all categorized documents.

SharePoint vs DMS: Comparison

CriteriaSharePoint / OneDriveDMS (Arhivix)
SetupComplex (IT team needed)Ready in 5 minutes
Auto classificationManual (metadata)AI classification
SearchRequires metadataOCR + AI (works without tags)
Local regulationsManual configurationBuilt-in
Cost (50 users)$1,250–2,850/moSignificantly less
Electronic signaturesAdditional licenseBuilt-in
Archive ledgerNot availableAutomatic
Mobile appYes (SharePoint app)Yes

When Is SharePoint the Right Choice?

SharePoint makes sense if:

  • You already have Microsoft 365 E3/E5 licenses
  • You have an IT team that can configure and maintain SharePoint
  • You need intranet, wiki, and collaboration beyond just DMS
  • You operate in multiple countries and need a global solution

When Is a Specialized DMS Better?

A DMS is better if:

  • You need a solution that works immediately, without configuration
  • You don't have an IT team to maintain SharePoint
  • You need compliance with local regulations
  • You want e-signatures, workflows, and archive records in one system
  • Your budget doesn't allow Microsoft 365 Enterprise licenses

Conclusion

SharePoint is a powerful tool — but power comes with complexity. For companies that want simple, fast, and compliant document management, a specialized DMS is the smarter choice.

Arhivix gives you everything you need from a DMS — without an IT team, without complex configuration, without expensive licenses.