Using SharePoint as a Database: Are There Better Alternatives?

Businesses are always looking for solutions that offer flexibility in managing and storing data efficiently. Microsoft SharePoint is primarily known as a document management and collaboration platform, but many organizations have considered using it as an alternative to traditional databases.

The question is: can SharePoint effectively serve as a database, or are there better options available?

This blog covers 

• Can SharePoint function as a database?
• Limitations of using SharePoint as a database
• When should you use SharePoint vs. a dedicated database?
• Top alternatives to SharePoint for database needs
• Better Data Management through the Use of SharePoint Consulting Services. 

By the end of this post, you will have a clearer understanding of whether SharePoint is a suitable solution for your database needs or if another option would be more effective for your business.

Can SharePoint Function as a Database?

Technically, SharePoint can store and manage structured data in specific ways, but it is not designed to function as a full-fledged database management system. SharePoint’s capabilities allow it to manage structured data through several features:

• Custom Lists: SharePoint allows you to create custom lists that function like tables in a database. These lists can have columns such as text, numbers, dates, and choices, making storing data in a structured format easy.
• Document Libraries: SharePoint can store files in document libraries, which can be used to manage file-based data alongside other types.
• External Data Connections: SharePoint can integrate with external databases, such as SQL Server, to manage external data directly within the platform.

However, while these features may mimic database functionalities, SharePoint was never intended to serve as a complete database management system like SQL Server, MySQL, or Oracle. It is most appropriate for hybrid solutions requiring document management and lightweight data tracking.

Key SharePoint Features for Data Storage:

• Lookup Fields: SharePoint enables you to create relationships between lists, which function similarly to foreign keys in relational databases.
• Views & Filtering: This feature allows users to organize and display data dynamically based on different filters or views.
• Power Apps Integration: For businesses requiring low-code solutions, SharePoint integrates with Power Apps, allowing the creation of custom forms for data entry.
• Workflow Automation: With Power Automate, SharePoint allows for workflow automation, making it easy to trigger actions based on changes in data.

SharePoint works effectively for simple data tracking needs such as employee records, project management, or task lists. However, a traditional database would better suit more complex or high-volume transactional data.

Limitations of Using SharePoint as a Database

• Performance Issues with Large Datasets: SharePoint lists slow down when data exceeds 5,000 items per view; complex queries and joins are inefficient.
• Lack of Advanced Database Features: SharePoint lacks stored procedures, triggers, and transactions, making it unsuitable for critical systems like financial applications.
• Data Integrity Challenges: SharePoint does not enforce referential integrity (e.g., foreign key constraints), and manual validation is required to prevent errors.
• Security & Compliance Risks: While granular permissions exist, they are not as robust as those in dedicated databases, with audit trails requiring additional setup.
• Scalability Constraints: SharePoint is not ideal for real-time analytics or high-transaction systems (e.g., eCommerce), and its cloud version has stricter limits than on-premises.

When Should You Use SharePoint vs. a Dedicated Database?

SharePoint works best in specific scenarios but is not always ideal for complex data storage needs. Here is a breakdown of when to use SharePoint and when to consider a dedicated database.

Use SharePoint for:

• Lightweight Data Tracking: SharePoint is great for tracking simple datasets such as employee contact lists, project tasks, or survey results.
• Document-Centric Workflows: If your primary need is managing documents, approvals, version control, and collaborative workflows, SharePoint is a strong fit.
• Team Collaboration: SharePoint’s integration with Microsoft 365 makes it a good solution for teams working together on shared lists and documents.
• Low-Code App Development: Power Apps and SharePoint lists are suitable for creating simple, low-code data entry and management applications.

Avoid SharePoint for:

• High-Volume Transactional Systems: SharePoint is unsuitable for systems requiring fast, high-volume transactions, such as eCommerce or banking platforms.
• Complex Relational Data: A dedicated database system is a better choice for applications like ERP or CRM that require deep SQL integrations.
• Real-Time Reporting & Analytics: SharePoint’s data storage capabilities are not designed for complex, real-time reporting or analytics. SQL databases integrate better with tools like Power BI for advanced reporting.

Top Alternatives to SharePoint for Database Needs

• Microsoft SQL Server

Best for: High-performance, ACID compliance, and advanced analytics.

Key benefits: Full relational database support, deep integration with Power BI & Azure, enterprise-grade security & scalability.

• Azure SQL Database

Best for: Cloud-based, scalable database solutions.

Key benefits: Fully managed PaaS with no server maintenance, AI-powered performance tuning, and built-in high availability.

• Dataverse (Microsoft Power Platform)

Best for: Low-code app development with structured data.

Key benefits: Native integration with Power Apps & Power Automate, better data relationships than SharePoint lists, role-based security & auditing.

• MySQL / PostgreSQL

Best for: Open-source, cost-effective database solutions.

Key benefits: High performance for web applications, strong community & third-party tool support.

• NoSQL Databases (Cosmos DB, MongoDB)

associated with semi-structured information, large-scale data processing, and IoT technologies. Flexible schema design and horizontal scalability.

How to Optimize SharePoint for Data Management

If SharePoint is still your preferred solution for managing data, there are several best practices to optimize its performance:

• Use Indexed Columns: Indexing frequently filtered columns can improve query performance and reduce the load on SharePoint when accessing large datasets.
• Archive Old Data: Keep SharePoint performance optimal by archiving older records to separate lists or libraries, ensuring faster access to more current data.
• Use Power Apps and Power Automate: For custom forms and data entry validation, integrate Power Apps with SharePoint lists. With Power Automate, processes can be automatically set up when data changes, which saves time and effort.
• Integrate with SQL Server: Use Business Connectivity Services (BCS) to link SharePoint to external databases for more advanced data management.
• Consult a SharePoint Solution Provider: If SharePoint is important for your data management, working with a SharePoint development service can optimize your architecture for better performance.

Conclusion

SharePoint can be practical for simple data tracking and document-driven workflows, making it suitable for small-scale or non-transactional data management needs. 

However, when it comes to high-performance, transactional, or large-scale data storage, solutions like SQL Server, Azure SQL, or Dataverse are more appropriate due to their advanced capabilities, scalability, and robust data integrity features. 

Integrating SharePoint with SQL databases or the Microsoft Power Platform can offer a balanced solution for businesses seeking a more efficient hybrid approach. By understanding these differences, companies can decide whether SharePoint serves their needs or if a dedicated database solution would be more effective.

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