Office 365 is a cloud-hosted collaborative platform that can be used along with other offices 365 services like Power BI, Microsoft Team, Power Automate, MS Stream, and other services. While on-premise SharePoint Server can be hosted on the internet or intranet. Locally hosted SharePoint Server provides better security of documents and data, supports a higher level of customization, and better 3rd party integration. Also, one can have a public-facing website using the SharePoint server.