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When to choose SharePoint Embedded

Applies to: Developer · Architect · IT decision maker

SharePoint Embedded is a good fit when your app needs to store and manage files, but the files must stay inside each customer's Microsoft 365 tenant, under that customer's own compliance controls. This article helps you decide, and compares SharePoint Embedded to the alternatives developers most often consider.

Choose SharePoint Embedded when

Choose SharePoint Embedded when most of these statements are true:

  • You build a multitenant SaaS or line-of-business app that stores customer files.
  • Customers require their files to stay in their own Microsoft 365 tenant, not in your storage.
  • Customer IT teams must apply their own data loss prevention (DLP), retention, and eDiscovery policies.
  • You want full programmatic control of files through Microsoft Graph, with your app as the only user interface.
  • You want built-in Office co-authoring, versioning, search, and Copilot grounding without building them yourself.
  • You don't want end users to need a Microsoft 365 license to use your app's file features.

Reconsider SharePoint Embedded when

Reconsider or choose another option when:

  • You need a ready-made, no-code end-user UI. SharePoint Embedded is API-only and has no interface of its own; consider SharePoint Online instead.
  • You don't build an application. Every SharePoint Embedded scenario involves calling Microsoft Graph from an app.
  • You need collaborative sites, portals, or intranet features. Use SharePoint Online instead.

SharePoint Embedded vs blob storage

Choose SharePoint Embedded over blob storage when compliance and Office collaboration matter more than raw object storage.

Consideration SharePoint Embedded Blob storage
Where content lives The customer's Microsoft 365 tenant Your storage account
Compliance Inherits the customer tenant's Microsoft Purview DLP, retention, and eDiscovery You build the compliance layer yourself
Office co-authoring Built in for Word, Excel, and PowerPoint Not generally available
Search and Copilot grounding Microsoft Search API and Copilot discoverability built in You build indexing and grounding yourself
Access model Microsoft Graph, per-container permissions Blob SAS tokens and cloud IAM roles

SharePoint Embedded vs competing file storage APIs

Choose SharePoint Embedded over competing file storage APIs when your enterprise customers must control their own data and policies.

Consideration SharePoint Embedded Competing file storage APIs
Data residency Stays in the customer's Microsoft 365 tenant Stored in the provider's cloud
Customer-enforced policy Customer's existing Microsoft 365 policies apply Limited customer control
End-user licensing No per-seat license required for end users Often per-seat licensing
Office co-authoring Built-in Word, Excel, and PowerPoint co-authoring Conversion or add-ons required

SharePoint Embedded vs SharePoint Online sites

Choose SharePoint Embedded over SharePoint Online sites when your app must be the only interface to the content.

Consideration SharePoint Embedded SharePoint Online sites
User interface Headless and API-only; your app owns the UX Built-in site UI users can browse
Content isolation Dedicated containers your app controls Shared site and library structure
Storage entitlements Separate, metered billing Counts against Microsoft 365 storage
Bypass risk Users can't bypass your app through a site Users with permission can open the site directly

Note

SharePoint Embedded containers get a higher Microsoft Graph API request quota than SharePoint Online sites, so app-driven, high-volume file operations scale further before throttling.

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