If you run a small business, there’s a good chance you’re already using Microsoft 365 for email, Word, Excel and Teams. But when it comes to storing files, many business owners feel confused about the difference between OneDrive and SharePoint.
Both tools save files to the cloud, both let multiple people work on documents, and both appear inside Microsoft 365… so what actually makes them different? And which should your business be using?
Here’s a simple explanation
What Is OneDrive?
Think of OneDrive as your personal cloud storage, like a digital filing cabinet that belongs to you.
What it’s designed for:
- Your personal work files
- Documents you’re drafting before sharing
- Things you don’t want everyone to see
- Notes, photos, private folders, timesheets, personal projects, etc.
You can think of OneDrive as the modern version of “My Documents” on your PC—except everything is stored safely online instead of on a single computer. This means if your laptop crashes, nothing is lost.
When to use OneDrive:
- Saving personal files that only you need
- Working on something before it’s ready for the team
- Accessing your files from home, office or on the go
- Backing up files automatically
Can you share from OneDrive?
Yes! You can share a file or folder with colleagues when you need to, but you remain the owner, and you control who can see it.
One Drive is great for individual work but not ideal for team projects or shared folders everyone needs.
What Is SharePoint?
If OneDrive is your personal cabinet, SharePoint is the office’s shared filing room.
It’s built for teams, departments and entire businesses. Everyone with permission can access the same documents in one organised place.
What it’s designed for:
- Company files everyone needs
- Team projects and document collaboration
- Shared policies and handbooks
- Job forms, templates, marketing files, quotes… anything shared
Many businesses use SharePoint as their main file server, replacing old-fashioned local servers with something accessible anywhere.
When to use SharePoint:
- A file belongs to the company, not a person
- Everyone needs the same version of a document
- You want to control who can view, edit, or share
- You want organised document libraries
Sharepoint is great for teams and business-wide storage but not ideal for saving private personal files.
Why Businesses Need Both
Some people think they should choose either OneDrive or SharePoint—but they actually serve different purposes and work well together.
Example: A staff member writes a proposal in OneDrive. When it’s ready for the team to view or edit, it’s saved into the SharePoint “Sales” folder. Everyone works on the same version with no more “V2, V3, FINAL, FINAL-FINAL” madness!
What Happens If an Employee Leaves?
This is where SharePoint becomes essential. If staff store everything in OneDrive and they leave the company:
- Files stay attached to their account
- Things can be deleted or lost
- It’s hard for a new person to pick up the work
But if files are in SharePoint:
- The business remains the owner
- Nothing disappears
- Anyone with permission can access them
From a business continuity point of view, SharePoint is safer.
How SharePoint Helps Teams Work Better
SharePoint can do more than just hold files. It can:
- Replace a physical server
- Store forms, templates and standard documents
- Host company policies and HR documents
- Act as an intranet (a private company website)
- Integrate with Teams folders
Many businesses don’t realise that when they save files inside Microsoft Teams, those files are actually stored in SharePoint behind the scenes.
Real-World Examples
Example 1: The “Shared Drive Replacement”
A business has shared folders on an old office server that keeps crashing. (Finance, HR, Marketing and Operations)
These folders can be moved into SharePoint, with permissions set so staff see only what they should.
Example 2: Remote Working
Employees need access to the same documents from home and in the office. SharePoint lets them log in from anywhere, even on a mobile or tablet.
Example 3: Onboarding New Staff
Instead of emailing files a new employee can log in, open sharepoint and see training guides, forms and handbooks in one organised place.
Where Does OneDrive Fit In?
Even with SharePoint in place, staff still need OneDrive. It keeps personal work separate from shared work.
Good examples of OneDrive use:
- Personal notes
- Drafts
- Expense photos and receipts
- Personal spreadsheets
- Work that’s not ready to share
So in short:
SharePoint = for everyone
OneDrive = for you
What is SharePoint? – Microsoft Support
Contact us at info@bse-it.co.uk or 01284 247024 for a free audit and friendly discussion on how we can help.
