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What is Microsoft OneDrive and how do you use it?

By Scott Robinson

OneDrive is Microsoft's online cloud storage service. It integrates with Windows 11 as a default location for saving documents, giving Microsoft account users 5 gigabytes (GB) of free storage space before offering upgrade options.

OneDrive enables users to save files, photos and other documents across multiple devices. They can also save their files in OneDrive and have them automatically sync on other devices. This means more than one person can access and work on the same document in multiple locations in real-time. OneDrive provides easy access to cloud storage space, allowing users to share content with others. When integrated with Microsoft Office 365, this content-sharing option extends to multiple people working on Word documents, Excel and PowerPoint files collaboratively.

How it works

OneDrive integrates with Microsoft Office, so users can access Word, Excel and PowerPoint documents from OneDrive. It doesn't require a download and should already be part of Windows 11. A Microsoft account is required to use OneDrive, and users must sign in before using it. To sign in, they need to go to "onedrive.com" and select "Sign in," which appears at the top of the page.

The system enables users to simultaneously edit Office documents, edit documents in browsers, and create and share folders. OneDrive also offers Facebook integration, automatic camera roll backup and enables users to email slide shows. Users can also scan documents and store them in OneDrive.

Users can choose to save data on OneDrive or File Explorer. Those who want to use OneDrive as a data backup platform should have data saved in both locations. However, other users can choose to store their files in either OneDrive or File Explorer.

Users can also share files stored in OneDrive with anyone. In OneDrive, the user must select the folder they want to share, go to the top toolbar and select the Share button to invite people. Users can then enter the email addresses of those with whom they want to share the file. If the recipient also has Office 365, then the user can select an option to allow them to edit the page. There are additional options for choosing access privileges in the drop-down menus. Users can also generate links to share files by going to the same share option and choosing "Get a Link." Additional options include allowing the recipient to edit. Users can then create a link, select it and can copy and paste it to anyone they choose.

OneDrive is also available on Mac, iPhone and Android mobile platforms.

The Personal Vault feature enables users to store important files with additional protection. Users can only access stored files with a strong authentication method or by adding another layer of identity verification, such as biometric authentication, a personal identification number, or a code sent to the user using email or SMS.

According to Microsoft, as of 2023, OneDrive hosted files from over 250 million customers annually. More recently, intelligence firm 6sense reported that 33,053 customers use OneDrive.

Business benefits of Microsoft OneDrive

OneDrive produces a wide range of operational and strategic benefits for organizations of all sizes. Beyond its facility for data storage, it's designed for collaboration, enhanced productivity and improved data governance.

The following examines those benefits:

• Data centralization. The need for local servers and drives is eliminated, and data curation and governance can all occur in a single space.
• Data synchronization between team members. When data is centralized, all workers sharing the data have access to the most up-to-date versions of working files.
• Storage scaling is simplified. Storage can be increased on demand.
• Multiple users. Several team members can work on the same files simultaneously from any location. Commenting and version control can be implemented on any file.
• Synchronization between Teams and SharePoint. Employees using both Teams and SharePoint can share documents seamlessly between those platforms.
• Enhanced security. Enterprise-grade security is applied to all files, including in-transit encryption, advanced threat protection and data loss prevention.
• Microsoft Graph. Search and indexing are available across the platform, enhancing file discovery.
• Workflow automation. Through Office 365, files stored in OneDrive can be folded into automated processes.

OneDrive concerns and considerations

For all its utility, OneDrive is not without its drawbacks, which include the following:

• Data sovereignty. Microsoft's server farms hosting the OneDrive platform cover the globe, raising the possibility that one organization's data could be spread across multiple countries, potentially creating legal and compliance issues. Data residency settings can mitigate this risk.
• Sync issues. When multiple users edit simultaneously outside the Office apps, conflicting file versions might be generated. Of course, this is a good reason to stick with those apps for editing when possible.
• Policy conflicts. While sharing files between Microsoft apps is convenient, OneDrive, SharePoint and Teams all have separate policy implementations. Conflicting settings can create confusion. Common governance over all three should be practiced.
• Cloud service downtime. Microsoft's cloud service can, at times, experience downtime, making files inaccessible. Where 24/7 file access is critical, local copies of essential folders can be made available using Files On-Demand.
• Overpaying. If some OneDrive licenses go unused, money is wasted. Storage use and inactive accounts should be regularly audited.

OneDrive pricing

OneDrive comes with 5 GB of free storage. Users can add more storage space by upgrading to a different personal or business plan. The personal plans include the free Basic 5 GB plan, a $1.99 a month 100 GB plan and the Microsoft 365 Personal plan with 1 TB of storage plus Office apps for one user at $9.99 per month or $99.99 per year. The Microsoft 365 Family plan is $12.99 per month or $129.99 per year for up to six people, each receiving 1 TB of storage.

For enterprise customers, Microsoft offers OneDrive for Business Plan 1, which includes 1 TB per user plus basic file sharing for $5 per user, per month and is billed annually. Plans integrating Microsoft 365 include Basic, which includes 1 TB per user plus Office apps and Teams for $6 per user, per month; Standard, which adds full desktop Office apps for $12.50 per user, per month; and Premium, which includes everything in Business Standard plus additional security and device management features for $22 per user, per month.

Free and personal plans	Amount of cloud storage per user	Cost of subscription (billed annually)
Free	5 GB	Free
Microsoft 365 Basic	100 GB for one person	$1.99 monthly/$19.99 annually
Microsoft 365 Personal	1 TB for one person plus Office apps	$9.99 monthly/$99.99 annually
Microsoft 365 Family	1 TB per person up to six people; includes other Microsoft apps	$12.99 per user, per month/ $129.99 annually
Business plans	Amount of cloud storage per user	Cost of subscription (billed annually)
OneDrive for Business Plan 1	1 TB plus basic file sharing	$5 per user, per month/$60 annually
Microsoft 365 Business Basic	1 TB plus web and mobile versions of Office apps and Teams	$6 per user, per month/$72 annually
Microsoft 365 Business Standard (no Teams)	1 TB for up to 300 users; includes 10+ additional apps	$10.25 per user, per month/$123 annually
Microsoft 365 Business Standard	1 TB for up to 300 users; includes 10+ additional apps	$12.50 per user, per month/$150 annually
Microsoft 365 Business Premium	Everything in Business Standard plus cyberthreat and endpoint protection	$22 per user, per month/$264 annually

Best practices for deploying OneDrive in the enterprise

As with all organization-wide deployments, it's wise to plan the rollout of OneDrive thoroughly beforehand. This includes assessing organizational objectives on file sharing, collaboration, access and data protection requirements. Existing storage systems should be audited, and a policy should be created around data classifications such as public, internal or confidential.

A governance framework should be in place, including folder and file naming conventions to prevent confusion and simplify access. Data ownership should be implemented for accountability, and policy coordination between enterprise apps should be in place.

The Microsoft 365 admin center is a useful management suite for setting default storage quotas, governance of devices and setting retention and deletion policies. Similarly, the Microsoft Migration Manager is helpful for moving data into the new platform. The Files On-Demand and Known Folder Move features should be activated.

The use of multifactor authentication is recommended. The data loss prevention feature should be used, and highly sensitive documents should be stored in the Personal Vault. Conditional access policies should be in place. The Microsoft Purview Compliance Center can be used for auditing and eDiscovery.

User training and adopting guidelines are important, as is the ongoing monitoring and maintenance of the OneDrive deployment once it's in place and live.

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