Microsoft 365 – Does It Include OneDrive and SharePoint?

Microsoft 365 is often described as a collection of business productivity applications, but it includes much more than Word, Excel, PowerPoint and Outlook.

For many organisations, two of its most valuable services are OneDrive and SharePoint.

Both platforms provide cloud-based file storage and collaboration, yet they are designed for different purposes. OneDrive is primarily intended for an individual employee’s working files, while SharePoint is designed for information that belongs to a team, department or the wider organisation.

Most mainstream Microsoft 365 business subscriptions include access to OneDrive and SharePoint. However, the exact services, storage allowances and capabilities available depend on the licence assigned to each user. Microsoft therefore recommends checking the detailed service availability for the specific plan rather than assuming every Microsoft 365 subscription is identical. 

This guide explains what OneDrive and SharePoint are, how they work together and how businesses should decide where their information belongs.

Does Microsoft 365 Include OneDrive?

Yes, OneDrive is included with many Microsoft 365 business and enterprise subscriptions.

Microsoft describes OneDrive as an online storage service that allows users to protect work files, access them across devices, share them and collaborate on documents. It can also be purchased through certain standalone plans. 

For example, Microsoft’s current UK business-plan information lists OneDrive and 1 TB of cloud storage per user within Microsoft 365 Business Basic, Business Standard and Business Premium. 

OneDrive can be used to:

• Store an employee’s working documents
• Access files from different devices
• Synchronise selected files to a computer
• Share documents with colleagues
• Collaborate in Word, Excel and PowerPoint
• Recover earlier versions of supported files
• Protect work when a laptop is lost or replaced
• Reduce dependence on files stored only on one device

However, simply having OneDrive included in a subscription does not guarantee that it has been configured properly.

Businesses should still consider:

• Sharing permissions
• Synchronisation settings
• Device security
• Data-retention requirements
• User access
• Former-employee accounts
• Backup and recovery
• Sensitive information

Does Microsoft 365 Include SharePoint?

SharePoint is also included in many Microsoft 365 business and enterprise plans.

Microsoft describes SharePoint and OneDrive as cloud-based services that help organisations share and manage content, knowledge and applications. SharePoint can be used to create team sites through which employees share information, files and resources. 

Common Microsoft 365 subscriptions that include SharePoint Online generally include:

• Microsoft 365 Business Basic
• Microsoft 365 Business Standard
• Microsoft 365 Business Premium
• Many Microsoft 365 Enterprise plans
• Many Office 365 Enterprise plans
• Certain education, government and nonprofit plans

Exact availability varies between subscriptions and regions. Microsoft publishes service descriptions and plan comparisons because each licence contains a different combination of services. 

SharePoint does not usually appear as a traditional desktop application installed alongside Word or Excel.

Instead, users normally access it through:

• A web browser
• Microsoft Teams
• The Microsoft 365 app launcher
• Links to SharePoint sites
• The OneDrive synchronisation application
• Office applications when opening shared files

This can lead some businesses to believe that they do not have SharePoint, even when it is part of their subscription.

What Is OneDrive for Business?

OneDrive for Business provides personal cloud storage for each licensed employee.

Although the word “personal” is used, the account belongs to the organisation rather than the employee as a private individual.

It is linked to the user’s work identity and is managed through the organisation’s Microsoft 365 environment.

A user might store:

• Draft proposals
• Personal working notes
• Documents not yet ready for a team
• Temporary project material
• Individual reports
• Files used across several devices

OneDrive is particularly useful when an employee is preparing or reviewing a document before it becomes part of a wider departmental or company record.

A Simple OneDrive Example

Imagine that an employee is drafting a new customer-service procedure.

While the document is being developed, the employee may store it in OneDrive and share it with one or two colleagues for feedback.

Once the procedure is approved and becomes an official company document, it should normally be moved into an appropriate SharePoint library.

That change matters because the document is no longer merely one employee’s working file. It has become organisational information that should remain accessible even if the original author changes role or leaves the business.

What Is SharePoint Online?

SharePoint Online is a cloud-based platform for storing, organising, sharing and managing company information.

A SharePoint site can be created for:

• A department
• A project
• A customer account
• A management team
• A quality-management system
• An internal communications area
• A specific business process

Each site can contain document libraries, lists, pages, permissions and other components.

Businesses commonly use SharePoint for:

• Shared document libraries
• Company intranets
• Policies and procedures
• Project documentation
• Departmental files
• Forms and approvals
• News and announcements
• Controlled records
• Knowledge bases
• Business-process information

Unlike a traditional file server, SharePoint can store additional information about documents and support features such as version history, filtering, approval and automation.

OneDrive and SharePoint: What Is the Difference?

The simplest distinction is:

OneDrive is generally for an individual’s working files. SharePoint is generally for shared organisational information.

Both use Microsoft’s cloud-storage technology and can appear through the same OneDrive synchronisation application, which is why they sometimes feel similar to users.

However, their ownership and intended use are different.

The fact that a OneDrive document can be shared does not automatically make OneDrive the correct location for a permanent team document.

How Do OneDrive and SharePoint Work Together?

OneDrive and SharePoint are closely connected.

Employees can use the OneDrive synchronisation application to make files from both services available through File Explorer on a Windows computer.

A user may therefore see folders representing:

• Their personal OneDrive
• A department’s SharePoint library
• A project SharePoint site
• Files shared through Microsoft Teams

This gives employees a familiar way to work with cloud files without opening a browser every time.

When a document is saved into a synchronised SharePoint library, it is stored in SharePoint rather than solely on the local computer.

Changes can then be synchronised back to the cloud and made available to authorised colleagues.

What Happens When You Create a Microsoft Team?

Microsoft Teams also relies heavily on SharePoint.

When a standard team is created, an associated SharePoint site is generally used to store files shared in its channels.

This means that files shown in Teams are not necessarily stored inside the Teams application itself.

For a standard channel, the files are normally held in a SharePoint document library associated with that team.

OneDrive is commonly used when a person shares a file directly in a one-to-one or group chat.

This relationship is important when planning:

• Permissions
• Retention
• Backup
• Teams structures
• Site ownership
• Document governance

Deleting a Microsoft Team can therefore affect the connected SharePoint site and the information stored within it.

Is OneDrive a Replacement for a File Server?

OneDrive can replace certain uses of local personal folders and home drives, but it should not normally be treated as a complete replacement for a shared company file server by itself.

It works well for files that belong primarily to an individual employee.

However, placing all company data inside one person’s OneDrive can create serious problems.

These may include:

• Unclear ownership
• Excessive sharing links
• Loss of access when the employee leaves
• Difficult permission management
• Poor document organisation
• Limited departmental control
• Increased risk of accidental deletion

Shared company data should generally be stored in appropriately structured SharePoint sites or another suitable business system.

Can SharePoint Replace a File Server?

SharePoint can replace many traditional shared-drive requirements, but it is not a direct replacement for every file server.

It works particularly well for:

• Office documents
• Policies
• Project files
• Departmental records
• Collaborative documents
• Forms and lists
• Company knowledge

It may be less suitable for:

• Applications that require traditional file paths
• Large database files
• Certain CAD or design workloads
• Software that locks files in unusual ways
• Very large folder structures
• Systems requiring exceptionally low latency
• Unsupported file types or naming structures

A migration assessment should determine which files are appropriate for SharePoint and which need another platform.

Simply copying an entire file server into one enormous SharePoint library can reproduce existing problems rather than improve them.

What Are the Main Benefits of OneDrive?

Access from Different Locations

Employees can access authorised files from the office, home or another approved location.

This supports remote and hybrid working without requiring every document to remain on one laptop.

Synchronisation Across Devices

The OneDrive application can synchronise files between the cloud and supported computers.

Files On-Demand can also help reduce local storage use by downloading documents when required.

Easier Collaboration

Users can share a document rather than repeatedly emailing different copies.

This helps avoid filenames such as:

• Proposal-final.docx
• Proposal-final-v2.docx
• Proposal-final-approved-new.docx

Instead, colleagues can work with one cloud-based document.

Version History

Supported files can retain earlier versions, allowing users to review changes or restore previous content.

This can be useful when information is overwritten accidentally.

Protection of Desktop and Documents Folders

Known Folder Move can redirect supported Windows folders such as Desktop and Documents into OneDrive.

This can reduce the risk of losing locally stored files when a device fails or needs to be replaced.

The setting should be deployed and managed centrally rather than left entirely to employees.

What Are the Main Benefits of SharePoint?

Centralised Company Information

SharePoint provides a structured location for documents that belong to the organisation.

This makes it easier to find information and reduces dependence on individual employees.

Department and Project Sites

Separate sites can be created for different operational areas.

For example:

• Finance
• Human resources
• Sales
• Operations
• Marketing
• Senior management
• Customer projects

Permissions and content can then reflect the needs of each team.

Document Management

SharePoint supports capabilities such as:

• Version history
• Metadata
• Content approval
• Document libraries
• Check-in and check-out
• Retention controls
• Search
• Permissions

Not every organisation needs every feature, but the platform can provide much more control than a basic shared folder.

Company Intranet

SharePoint can be used to build an internal communication and information site.

An intranet may contain:

• Company news
• Policies
• Forms
• Staff resources
• Department links
• Training material
• Contact information
• Health and safety guidance

Integration with Microsoft 365

SharePoint works with services such as:

• Microsoft Teams
• OneDrive
• Word
• Excel
• PowerPoint
• Power Automate
• Power Apps
• Microsoft Lists
• Microsoft Copilot

This allows information stored in SharePoint to support wider business processes.

Do OneDrive and SharePoint Include 1 TB of Storage?

Microsoft 365 business plans commonly advertise 1 TB of OneDrive cloud storage per licensed user. Microsoft currently lists this allowance for Business Basic, Business Standard and Business Premium in its UK plan comparisons. 

SharePoint storage is calculated differently.

It is provided at the organisation or tenant level rather than as a separate 1 TB SharePoint library for every employee. The total allowance depends on the licences held and any additional storage purchased. OneDrive storage assigned to individual users is treated separately from the organisation’s main SharePoint storage pool. 

This difference can be confusing.

A business should not assume that ten users, each with 1 TB of OneDrive, automatically create 10 TB of general-purpose SharePoint storage.

Storage entitlements and limits can change, so the organisation should check its Microsoft 365 admin centre and current Microsoft service description before planning a large migration.

Is OneDrive the Same as a Backup?

OneDrive includes useful recovery features, but synchronisation is not the same as an independent business backup.

When a user changes or deletes a synchronised file, that change may also be copied to the cloud.

Microsoft 365 includes features such as:

• Recycle bins
• Version history
• Retention options
• Recovery capabilities

These can help in many situations, but they may not satisfy every organisation’s recovery, compliance or retention requirements.

A separate Microsoft 365 backup may be appropriate where the business needs:

• Independent recovery copies
• Longer retention
• Centralised backup reporting
• Protection from certain deletion scenarios
• Recovery outside Microsoft’s standard retention windows
• Additional ransomware resilience
• Granular restoration
• Contractual or regulatory assurance

The backup decision should be based on the value of the information and the consequences of losing it.

Is SharePoint the Same as a Backup?

No.

SharePoint is a live collaboration and content-management platform.

It provides resilience and recovery features, but its primary purpose is to store and manage active organisational information.

A business should still decide:

• How long deleted information must remain recoverable
• Whether retention policies are required
• Whether an independent backup is needed
• Who can delete sites and libraries
• How ransomware or malicious deletion would be handled
• How recovery will be tested

Cloud storage reduces dependence on local hardware, but it does not remove the need for a documented data-protection strategy.

Can Employees Share OneDrive and SharePoint Files Externally?

Yes, external sharing can be permitted, depending on the organisation’s configuration.

Users may be able to share files or folders with:

• Customers
• Suppliers
• Contractors
• Professional advisers
• Project partners

However, unrestricted external sharing can create data-security risks.

Businesses should consider:

• Whether anonymous links are permitted
• Whether links expire
• Whether recipients must authenticate
• Whether users can reshare information
• Which sites allow external sharing
• Whether sensitive documents are blocked
• How guest users are reviewed
• How sharing activity is monitored

Not every employee should necessarily be able to share every document outside the organisation.

External sharing should be configured according to business need and risk.

How Secure Are OneDrive and SharePoint?

Microsoft provides security, resilience and compliance capabilities within Microsoft 365, but customers remain responsible for how identities, permissions, devices and information are managed.

A secure implementation may include:

• Multi-factor authentication
• Conditional Access
• Restricted external sharing
• Least-privilege permissions
• Device-compliance policies
• Sensitivity labels
• Data Loss Prevention
• Retention policies
• Audit logging
• Access reviews
• Separate administrator accounts
• Backup
• Security awareness training

Poor permission design is one of the greatest risks in a SharePoint environment.

If users are given access through multiple overlapping groups and individual exceptions, it can become difficult to determine who can see sensitive information.

Permissions should generally be assigned through managed groups rather than repeatedly sharing documents with individual employees.

What Happens to OneDrive When an Employee Leaves?

Because OneDrive is connected to an individual work account, leaver management is important.

When an employee leaves, the business may need to:

• Block sign-in
• Revoke active sessions
• Preserve the employee’s files
• Give a manager temporary access
• Transfer important documents
• Remove personal or irrelevant material appropriately
• Retain information for the required period
• Delete the account according to policy

Important company records should not remain indefinitely in a former employee’s OneDrive.

They should be moved into the correct SharePoint site or other business system so that ownership is clear.

A documented offboarding process helps prevent both data loss and unnecessary retention.

Common OneDrive and SharePoint Mistakes

Storing Everything in OneDrive

OneDrive is not the best long-term home for information that belongs to a team or the organisation.

Using SharePoint Without a Structure

Creating many sites and libraries without governance can make information harder to find.

Recreating a Complicated File Server

Copying every existing folder into SharePoint can preserve obsolete and duplicated information.

Giving Everyone Access to Everything

Convenience should not override confidentiality or least privilege.

Allowing Uncontrolled External Sharing

Public or anonymous links can remain accessible longer than expected.

Relying on Synchronisation as the Only Backup

Synchronised changes and deletions can spread across devices and the cloud.

Failing to Assign Site Owners

Every SharePoint site should have responsible owners who review access and content.

Ignoring Former-Employee Data

Leaver processes should include OneDrive ownership and document transfer.

Synchronising Excessive Numbers of Files

Very large synchronised libraries can create performance and usability problems.

Assuming Microsoft 365 Is Automatically Configured Correctly

The services may be included, but their security and structure still require planning.

Which Microsoft 365 Plan Does Your Business Need?

The correct licence depends on more than whether OneDrive and SharePoint are included.

Businesses should also consider requirements for:

• Desktop Office applications
• Business email
• Microsoft Teams
• Device management
• Conditional Access
• Endpoint security
• Information protection
• Microsoft Copilot
• Compliance
• User numbers

Microsoft 365 Business Basic is commonly selected where employees mainly need web and mobile applications, business email and cloud collaboration.

Business Standard adds installable desktop versions of applications such as Word, Excel, PowerPoint and Outlook.

Business Premium adds further security and device-management capabilities for businesses with up to 300 users. Microsoft describes Business Premium as combining productivity services with advanced security and IT management. 

Licensing changes over time, and similarly named subscriptions may contain different services. A licence review can help prevent businesses from paying for overlapping products or missing important security features.

How Should a Business Organise Its Files?

A practical starting rule is:

Store in OneDrive when:

• The document is primarily for one employee
• It is still a draft
• It contains personal working notes
• It has not yet become an official company record
• Only limited temporary sharing is required

Store in SharePoint when:

• A team needs ongoing access
• The document belongs to a department
• It is an approved policy or procedure
• It must remain available when an employee leaves
• It forms part of a business process
• Several people need to collaborate
• Formal permissions or retention are required

This distinction should be explained to employees during training.

Without clear guidance, users may store information wherever feels most convenient, creating long-term ownership and access problems.

How to Introduce OneDrive and SharePoint Properly

Review Existing Information

Identify:

• Active documents
• Duplicated files
• Obsolete folders
• Sensitive information
• Departmental ownership
• Application dependencies
• Retention requirements

Design the Structure

Plan SharePoint sites and libraries around how the organisation operates rather than simply copying the old server structure.

Define Permissions

Decide which roles need access to each area.

Avoid unnecessary individual exceptions.

Configure External Sharing

Choose when and how information can be shared with people outside the business.

Plan Migration

Use a controlled migration method that preserves required information and minimises disruption.

Configure Synchronisation

Decide which libraries employees genuinely need through File Explorer.

Not every SharePoint site needs to be synchronised to every device.

Provide Training

Employees should understand:

• The difference between OneDrive and SharePoint
• Where documents should be saved
• How to share securely
• How to collaborate
• How to recover previous versions
• How to report a problem

Review the Environment

SharePoint and OneDrive should be reviewed regularly for:

• Inactive sites
• Excessive permissions
• External guests
• Storage use
• Unsupported structures
• Former employees
• Sensitive information
• Backup status

How Hamilton Group Can Help

Hamilton Group helps UK businesses get more value from Microsoft 365, OneDrive and SharePoint.

Our services can include:

• Microsoft 365 licensing reviews
• OneDrive configuration
• SharePoint design and deployment
• File-server migrations
• SharePoint intranets
• Microsoft Teams integration
• External-sharing reviews
• Permissions and access control
• Microsoft Entra ID
• Multi-factor authentication
• Conditional Access
• Microsoft Intune
• Data Loss Prevention
• Sensitivity labels
• Microsoft 365 backup
• User training
• Managed IT support
• Managed cybersecurity

We can assess how your business currently stores and shares information before recommending a suitable structure.

The aim is not simply to move files into the cloud. It is to make information easier to access, safer to share and more resilient when employees, devices or business requirements change.

Make Better Use of OneDrive and SharePoint

Microsoft 365 does include OneDrive and SharePoint in many of its main business subscriptions, but the two services are not interchangeable.

OneDrive is best suited to an individual employee’s working files.

SharePoint is best suited to information that belongs to a team, department or the organisation as a whole.

Used together, they can help businesses:

• Reduce dependence on local servers
• Support remote working
• Improve collaboration
• Maintain clearer document ownership
• Protect information when devices fail
• Make company knowledge easier to find
• Control how files are shared

However, these benefits depend on appropriate licensing, structure, permissions, security and user training.

To discuss Microsoft 365, OneDrive or SharePoint for your business, contact Hamilton Group on 0330 043 0069 and speak to one of our experts today.