Are important company files stored in the right place?

IT Desk can help your business organise OneDrive and SharePoint, improve document ownership and configure secure access for employees and external users. We can review your current Microsoft 365 environment and create a structure that is easier to manage as your team grows.

What is the main difference between OneDrive and SharePoint?

The simplest difference is ownership.

OneDrive is for individual work. SharePoint is for shared organisational work.

OneDrive for Business gives each Microsoft 365 user their own cloud-based file library. Files stored there are private by default, although the user can share them with colleagues or external contacts.

SharePoint provides shared sites and document libraries that can be accessed by authorised teams, departments or the whole organisation.

Although OneDrive uses SharePoint technology behind the scenes, the two services are presented differently because they serve different working purposes.

OneDrive vs SharePoint at a glance

When should a business use OneDrive?

OneDrive is suitable when an employee is creating or managing a file as an individual.

Examples include:

• A draft document that is not ready for review

• Personal working notes

• An individual task list

• Temporary research

• Documents being prepared before they are moved into a team workspace

• Files that need to be accessed from multiple devices

• A document being shared temporarily with a small number of people

OneDrive allows employees to access their work from supported devices and collaborate on files without emailing separate attachments.

However, sharing a OneDrive file does not turn it into a team-owned document. It remains stored within the original user’s OneDrive account.

When should a business use SharePoint?

SharePoint should normally be used when information belongs to a team, department, project or the wider organisation.

Examples include:

• Company policies and procedures

• Sales and marketing resources

• Project documentation

• Departmental templates

• Client delivery documents

• Operational processes

• HR resources with restricted permissions

• Shared contracts and supplier information

• Documents that need to remain available when an employee leaves

SharePoint gives businesses more control over how shared information is structured, accessed and managed.

Document libraries can be created for different teams or purposes, while permissions can be applied at site, library, folder or document level. SharePoint can also use metadata, version history, retention controls and approval processes where required.

Can OneDrive files be shared with a team?

Yes. A user can share a OneDrive file or folder with colleagues and, if permitted by the organisation, external contacts.

This is useful for temporary or limited collaboration. However, OneDrive should not become the default home for important team documents simply because sharing is possible.

If several employees depend on a file as part of an ongoing business process, it usually belongs in SharePoint. This gives the team clearer ownership and reduces reliance on an individual employee’s account.

Microsoft allows files to be moved or copied between OneDrive and SharePoint. A document can therefore begin as an individual draft in OneDrive and be moved to SharePoint when it becomes a team resource.

Are Microsoft Teams files stored in OneDrive or SharePoint?

It depends on where the file is shared.

Files uploaded to a standard Microsoft Teams channel are stored in the SharePoint site connected to that team. This is why channel files remain available to authorised team members through both Teams and SharePoint.

Files shared in certain Teams chats are generally stored in the sender’s OneDrive and shared with the participants in that conversation.

Teams therefore acts as an interface for collaboration, while OneDrive and SharePoint provide much of the underlying file storage.

Is SharePoint better than OneDrive?

SharePoint is not automatically better than OneDrive. Each service is designed for a different type of work.

OneDrive is usually the better location for an employee’s individual work and early drafts. SharePoint is normally better for shared information that needs collective ownership, structured access and long-term management.

Problems occur when the wrong tool is used for the wrong purpose.

For example, storing all company documents in one employee’s OneDrive can make information difficult to govern and create disruption when that person changes role or leaves. Equally, placing every unfinished personal file into SharePoint can create clutter and make shared libraries harder to navigate.

The best approach is to establish clear rules covering which documents belong in each location.

Can SharePoint files appear in File Explorer?

Yes. Employees do not necessarily need to open a web browser every time they want to work with SharePoint files.

SharePoint document libraries can be accessed from a computer using the OneDrive sync application. Users can sync a library or add a shortcut to it in OneDrive, depending on the organisation’s chosen setup.

The files can then appear in File Explorer on Windows or Finder on a Mac. Changes made locally are synchronised back to Microsoft 365 when the device is connected.

This convenience can make SharePoint feel similar to a traditional company file server, although the permissions and document structure still come from the SharePoint site.

Do OneDrive and SharePoint have the same security?

Both services use Microsoft 365 security, identity and sharing controls, but their real-world security depends on how the organisation configures and manages them.

Important considerations include:

• Who can create sharing links

• Whether external sharing is permitted

• Whether anonymous links are allowed

• How guest users are managed

• Which employees can access each site

• Whether multi-factor authentication is enforced

• How information is classified and retained

• Whether old or unused sharing links are reviewed

• How leavers’ OneDrive data is handled

A poorly planned SharePoint structure can result in excessive access or duplicated information. OneDrive can also create risks if employees share sensitive documents too widely.

Microsoft recommends establishing governance for SharePoint rather than allowing sites, permissions and content to grow without oversight.

Should a small business use both?

In most cases, yes.

OneDrive and SharePoint are complementary parts of Microsoft 365:

• Employees use OneDrive for their individual work.

• Teams use SharePoint for shared business information.

• Microsoft Teams provides access to SharePoint documents through channels.

• The OneDrive application can synchronise both OneDrive and SharePoint files to a computer.

A simple internal rule can prevent a great deal of confusion:

There will be exceptions, but this is a useful starting point for most organisations.

Businesses should also create an agreed SharePoint structure, assign site owners and document how permissions and external sharing will be managed.

For a wider look at how these tools support hybrid teams, read our guide to remote working with Microsoft 365, Teams, SharePoint and OneDrive.