SharePoint or OneDrive: where should our business store files?

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Last updated: 9 November 2026

The short answer

Use SharePoint for files that belong to the business or a team, and OneDrive for one person’s drafts and personal work files. A simple test: if a file would still matter after the person who created it leaves, it belongs in SharePoint. Teams file storage is SharePoint underneath.

SharePoint, OneDrive and Teams compared

Where each Microsoft 365 tool fits
Tool Best for Examples
SharePoint Shared files that belong to the business or a team HR, finance, projects and templates
OneDrive One person’s personal work files and drafts Replaces My Documents and the desktop
Teams Chat, meetings and working together Every team’s Files tab is a SharePoint site underneath

SharePoint comes with Microsoft 365 Business Basic, Business Standard and Business Premium, so most small businesses already own it. Each organisation gets 1 TB of SharePoint storage plus 10 GB for every licence, shared across all sites. OneDrive storage for each user is separate.

What SharePoint gives a small business

One version of every file

Several people can edit the same document at once, and version history lets you go back to an earlier copy.

Search that finds things

SharePoint searches inside documents, not just file names.

Controlled sharing

Share a single file or folder with a client or supplier securely, with an expiry date, instead of emailing attachments.

Recovery

Deleted files go to a recycle bin, and a whole library can be restored to an earlier point if something goes wrong.

Files open in the browser, the desktop apps or on a phone without a VPN, and libraries can be synced to File Explorer using the OneDrive app, so staff keep working in familiar folders.

How to organise SharePoint so people use it

The most common reason SharePoint fails is that the old S: drive is copied across unchanged. A little planning makes a big difference.

  • Create a site per team or function, such as Finance, HR, Operations and Sales, rather than one giant site.
  • Keep folders shallow. Two or three levels is plenty, as deep trees are hard to navigate and can hit path-length limits.
  • Set permissions at site level, not on individual folders, so access stays simple to manage.
  • Clean up before you migrate: archive old projects, delete duplicates and agree naming conventions.
  • Pin the key libraries in Teams and sync them to File Explorer.
  • Train people on saving, sharing and co-authoring. Twenty minutes of training saves weeks of confusion.

Keeping it secure

SharePoint security basics
Control What to do
Sign-in Multi-factor authentication on every account
External sharing Restrict to specific people and set links to expire
Access reviews Review who has access at least twice a year and remove leavers promptly
Sensitive files Label sensitive information such as HR and finance files
Backup Use a separate third-party Microsoft 365 backup, because you are responsible for your data

Permissions matter even more with Microsoft 365 Copilot, which can find and summarise anything a user already has access to. If an HR folder is shared with everyone, Copilot may surface it, so tidy permissions before you switch Copilot on.

How ABCOM helps

As a Sussex managed IT provider since 1996, we review how your files are stored today and give you a simple SharePoint plan covering structure, permissions, security and migration. We then migrate out of hours, set the old shares to read-only and support your staff for the first few weeks. For most small businesses this is a few weeks’ work. See our managed IT services and the full guide, SharePoint Made Simple: A Small Business Guide.

Quick answers

Is SharePoint included in Microsoft 365?

Yes. It is included in Microsoft 365 Business Basic, Business Standard and Business Premium, as well as the enterprise plans, so you do not need to buy it separately.

Can staff still use folders in File Explorer?

Yes. SharePoint libraries can be synced to File Explorer using the OneDrive app, so staff keep working in familiar folders while files sync in the background.

Do we need to tidy SharePoint before using Copilot?

Yes. Copilot can use any content a user already has permission to see, so over-shared sites and folders can expose sensitive information. Review permissions first.

Want SharePoint set up properly? Talk to us for a no-obligation review.

Talk to ABCOM

Related answers and guides

Sources and further reading

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