Choosing between SharePoint, Power Apps with Dataverse, or a full custom Azure architecture can make the difference between a simple internal tool and a scalable business solution.

Across modern organizations, Microsoft 365 has become the standard infrastructure for collaboration and productivity.

But when the need arises to automate internal processes or build business applications, key questions appear:
“Where should we store our data? SharePoint? Dataverse? Or a fully custom solution built in Azure?”

Your platform choice directly impacts performance, scalability, security, and long-term cost of ownership.

If you already use Microsoft 365, you already have SharePoint.
It’s the perfect starting point for internal apps where you want to collect data, manage documents, and provide a familiar interface to end users.

✅ Advantages:

• Included in Microsoft 365 – no extra licensing required.
• Easy to configure and natively integrated with Teams, OneDrive, and Outlook.
• Handles up to 5,000 records per entity (list) efficiently.
• Ideal for prototypes and lightweight departmental applications.

⚠️ Limitations:

• Performance decreases on views exceeding 5,000 items or containing more than 8 lookup columns (including Person, Choice, or Managed Metadata types).
• No true relational integrity between lists – lookups do not enforce data consistency.
• No field-level security options.
• Becomes complex in Power Apps when connecting to multiple SharePoint lists.

When to choose SharePoint:

• Simple internal apps – HR requests, IT service forms, procurement tracking, or asset lists.
• Approval workflows with minimal data relationships.
• When you need a quick, low-cost solution within Microsoft 365.

💡 SharePoint is ideal for apps with moderate data volume and low complexity.
If your views slow down or you need more lookup relationships, consider migrating to Dataverse.

When your app becomes a core business system — with relational data, advanced logic, and layered security — the right foundation is Power Apps with Dataverse.

✅ Advantages:

• Consistent performance even with millions of records.
• Supports complex data relationships (one-to-many, many-to-many).
• Row- and field-level security for precise access control.
• Business rules, validation logic, and calculated or rollup fields.
• Deep integration with Dynamics 365, Power BI, AI Builder, and Copilot Studio.
• Centralized governance through the Power Platform Admin Center.

When to choose Dataverse:

• For complex apps like CRM, project management, or operations tracking.
• For apps that require integrated Power BI reports or automated workflows.
• When you need full governance, compliance, and scalability.

💡 Dataverse is the foundation for enterprise-grade Power Platform apps.
Combining Dataverse + SharePoint provides the best of both worlds: structured relational data and advanced document management, natively integrated with Teams.

Both platforms can complement each other perfectly:

• SharePoint for document and file management,
• Dataverse for structured business data,
• Connected through Power Automate for unified and scalable workflows.

For organizations with existing Azure infrastructure that require maximum performance and flexibility, we recommend:
SharePoint (modern interface) → Azure Web App (API / business logic) → Azure SQL Database (data).

How it works:

• The SharePoint interface is built with React and Office UI Fabric (Office React UX) – visually identical to Microsoft 365 apps, ensuring a responsive and intuitive experience.
• Azure Web App (API) handles business logic, validations, and process automation, securely connecting to the database.
• Azure SQL Database stores data efficiently and securely, with no delegation limits.

Native Microsoft 365 integration:

• 🌐 React web parts can be displayed as apps directly in Microsoft Teams.
• 🔐 Authentication through Microsoft Entra ID (Azure AD).
• 🧩 Full access to Microsoft Graph API – users, files, groups, and emails.

✅ Advantages:

• Full control and top-tier performance.
• Modern, responsive UX built on Office React components.
• Seamless integration with Teams, OneDrive, Outlook, and Graph API.
• Unlimited scalability within Azure infrastructure.
• Ability to connect data from ERP, CRM, or other APIs.

⚠️ Limitations:

• Requires React and backend (.NET / Node.js) expertise.
• Azure hosting costs (SQL + App Service).
• Longer development time compared to Power Apps.

• ✅ SharePoint – for fast internal apps.
• 🚀 Power Apps + Dataverse + SharePoint – for enterprise business apps with complex logic and integrated document management.
• 🧱 Full Custom (SharePoint + Web App + SQL) – for full control, modern UX, and advanced integration.
• 🔗 SharePoint + Dataverse (Hybrid) – for document-heavy solutions and extended reporting.

💡 In short:
– SharePoint for simplicity.
– Dataverse for enterprise-grade apps.
– Azure Custom for complete control and deep Microsoft 365 integration.

AtStadler & Partners, we analyze Power Platform, SharePoint, and Azure scenarios to find the best-fit architecture for every business.

Get in touch for a personalized assessment and discover how to accelerate digital transformation within the Microsoft ecosystem.