In Microsoft 365, OneDrive is for your personal work files, SharePoint is for shared business files, and Teams is a front end to SharePoint for a specific group. They use the same underlying storage, which is why it gets confusing.
The simple rule
- OneDrive – files only you work on, drafts, personal copies. If you left tomorrow, nobody would need them.
- SharePoint – files the business owns: policies, projects, client work, finance. Structured into sites and libraries.
- Teams – when a group needs those SharePoint files alongside their chat and meetings. The files still live in SharePoint; Teams just shows them.
Why people get it wrong
- Everything ends up in OneDrive, then someone leaves and their account is disabled with business files inside it
- Files are shared from OneDrive by link, so there is no single owned copy
- Teams channels multiply, each with its own SharePoint, and nobody knows which is current
Getting it right
- Set up a proper SharePoint structure for business files first
- Tell staff: personal = OneDrive, shared = SharePoint (via Teams if the group wants it)
- Move business files out of OneDrive during onboarding/offboarding checks
- Back it all up – Microsoft 365 is not backed up by default
Need help with Microsoft 365? See our cloud services or talk to our Edmonton team.
Microsoft 365 guides
- Microsoft 365 vs Google Workspace
- Microsoft 365 licensing explained
- What you get with Business Premium
- OneDrive vs SharePoint vs Teams files
- Microsoft 365 security checklist
- Is Microsoft 365 backed up?
- Migrating email to Microsoft 365
Frequently asked questions
What is the difference between OneDrive and SharePoint?
OneDrive is your personal file storage; SharePoint is the business’s shared storage. Both are part of Microsoft 365 and use similar technology, but the ownership and purpose differ.
Should business files be in Teams or SharePoint?
They live in SharePoint either way – Teams is just a convenient view of a SharePoint site for a specific group. Use Teams when the group also wants chat and meetings alongside the files.
What happens to OneDrive files when someone leaves?
Their OneDrive is retained for a period then deleted. Any business files stored there need to be moved to SharePoint before that – a reason to keep business files out of OneDrive.
How does Scandifix help?
We set up the SharePoint structure, give staff a clear rule for where files go, and handle the onboarding/offboarding file checks.