When Should We Use SharePoint Group and AD Group?

Managing user permissions efficiently is crucial in any SharePoint environment. One of the common dilemmas administrators face is choosing between SharePoint Groups and Active Directory (AD) Groups for managing permissions. Both have their strengths and weaknesses, and understanding when to use each is essential for optimizing security and administration.

What is a SharePoint Group?

SharePoint Groups are security groups created and managed directly within SharePoint. These groups help in organizing users who need similar permissions on a SharePoint site.

Pros of SharePoint Groups:

Site-Specific Management – Permissions are controlled within SharePoint, allowing site administrators to handle access without involving IT or AD administrators. This is especially useful for business users who need quick adjustments.
Granular Permission Control – Unlike AD Groups, SharePoint Groups allow permissions to be assigned at the site, list, library, folder, or item level, ensuring fine-tuned access control.
User-Friendly Management – Site owners can easily add or remove members without the need to contact IT, reducing administrative overhead.
Flexibility in SharePoint Online – Ideal for SharePoint Online where AD groups might not be as practical, especially when dealing with external or guest users.

Cons of SharePoint Groups:

Not Centralized – Permissions are limited to SharePoint and do not apply to other enterprise systems like Teams, OneDrive, or file shares.
Manual Management – Since users need to be added or removed manually, maintaining groups can be time-consuming for large organizations.
Limited Scalability – Managing permissions via SharePoint Groups becomes difficult as the number of users increases, making it unsuitable for enterprise-wide access control.

What is an Active Directory (AD) Group?

AD Groups are managed in the organization’s Active Directory and can be used across multiple platforms, including SharePoint. There are three main types:

Security Groups – Used for granting access and permissions to various resources, including SharePoint, network drives, and applications.
Distribution Groups – Primarily used for email distribution lists; these do not control permissions.
Microsoft 365 Groups (O365 Groups) – A modern group type that integrates with Microsoft Teams, SharePoint, Exchange, and other Microsoft 365 services.

Pros of AD Groups:

Centralized Management – IT administrators handle group membership in Active Directory, ensuring consistency across all integrated systems.
Enterprise-Level Control – Permissions and access apply beyond SharePoint, covering network shares, Teams, OneDrive, and Exchange.
Automation and Policy Management – Membership can be managed dynamically using Group Policies or automated scripts, reducing manual work.
Better Integration – AD Groups work seamlessly with Microsoft 365, Exchange, and enterprise applications, ensuring a unified security approach.

Cons of AD Groups:

Requires IT Involvement – Site owners cannot modify AD Groups themselves, leading to potential delays when access needs to be changed quickly.
Less Granular Control in SharePoint – Permissions are typically applied at the site or library level, making it harder to fine-tune access at the folder or item level.
External Users Limitation – AD Groups do not support adding external users by default, making it challenging for companies working with external collaborators.

Use Cases for SharePoint Groups

Small Teams and Departments – When only a small team needs access to a specific SharePoint site, list, or library, SharePoint Groups provide quick and easy management.
Temporary Project Teams – If a project requires temporary access to a SharePoint resource, it’s easier to manage permissions using SharePoint Groups.
Non-IT Administered Sites – When business users need to manage access themselves without involving IT, SharePoint Groups are the best option.

Use Cases for AD Groups

Enterprise-Wide Access Management – If users need consistent access across SharePoint, OneDrive, Teams, and network shares, AD Groups are the way to go.
Role-Based Access Control – Large organizations can manage access based on job roles (e.g., “Finance Team,” “HR Department”) via AD Groups, ensuring security compliance.
Multi-System Integration – When access needs to be granted across multiple systems like SharePoint, Exchange, and ERP applications, AD Groups provide a centralized solution.

SharePoint Groups vs. AD Groups: A Comparison Table

Feature	SharePoint Groups	AD Groups
Management	Managed within SharePoint	Managed in Active Directory
Scope	Limited to SharePoint	Enterprise-wide (Teams, OneDrive, etc.)
Granular Permissions	Yes, down to item-level	No, usually site-level or higher
IT Dependency	No, site owners can manage	Yes, IT manages groups
Automation	No automation	Can be automated with policies and scripts
Supports External Users	Yes, but limited to SharePoint	No, unless configured in Azure AD
Scalability	Works best for small teams	Best for large organizations

Can We Use Both Together?

Yes! Many organizations use a hybrid approach:

Use AD Groups for broad access control, ensuring security across multiple systems.
Use SharePoint Groups for finer control within specific SharePoint sites.
Nest AD Groups inside SharePoint Groups to leverage centralized management while allowing site-specific administration.

Choosing between SharePoint Groups and AD Groups depends on your organization’s structure and needs. SharePoint Groups offer flexibility and autonomy at the site level, while AD Groups provide centralized management and consistency across enterprise applications. The best approach often involves leveraging both based on the required level of control and efficiency.

By understanding the strengths and limitations of both group types, organizations can build a scalable and efficient permission management strategy that meets both business and IT needs.