On the surface, SharePoint and OneDrive have a lot in common. When it comes to file management, you wouldn't be faulted for viewing the two as yet another example of Microsoft creating two redundant products. But dig a little bit deeper, and you'll find that each is tailored to different use cases. Understanding their differences and appropriate uses can help ensure optimal file management throughout your organization.
Let’s break down how SharePoint differs from OneDrive, when to use each application, and best practices for getting the most out of both platforms.
Fundamentally, SharePoint is designed for collaborative, team-oriented file management, whereas OneDrive is primarily intended for individual use. In these tables, we highlight where they differ on a few key features:
Feature |
SharePoint |
OneDrive |
| Primary Use | Advanced features for content management and governance | Basic file management and sharing |
| Purpose | Team and department collaboration | Individual access and productivity |
| Access and Ownership | Team or organization-wide | Individual user's account |
| Storage Capacity | Based on organizational limits | Up to 1 TB per user |
| Collaboration | Designed for multiple simultaneous collaborators | Ideal for individual or limited collaboration |
| Permissions Management | Robust team-oriented permissions | Granular, user-specific permissions |
| Microsoft 365 Integrations | Integrates deeply with Microsoft Teams, Power Automate, Lists, and custom apps | Integrates closely with individual user tools like Outlook and Teams chat |
Both tools place am emphasis on security, but their implementations vary based on intended usage:
Security & Compliance |
SharePoint |
OneDrive |
| Permissions Level | Team-centric, structured | User-centric, granular |
| External Sharing | Controlled and monitored | Highly flexible, secure external sharing |
| Compliance Features | Advanced compliance management ideal for team or departmental oversight | Sufficient for individual compliance management |
| Data Ownership & Retention | Organization retains access independent of individual user tenure | Files tied to individual users; risk of loss if not managed proactively |
Both platforms support syncing via the OneDrive sync application, allowing offline access and desktop integration:
Syncing &Accessibility |
SharePoint |
OneDrive |
| Recommended Syncing Strategy | Selectively sync essential folders only | Sync individual files and regularly accessed folders |
| Offline Access | Available, ideal for collaborative files | Available, suited for individual workflows |
| Accessibility | Team-wide visibility and management | User-specific access control |
SharePoint is ideally suited for situations involving multiple team members who need regular, structured access to shared files. It stands out in project management scenarios, departmental storage solutions, and long-term document repositories. SharePoint provides advanced features like metadata tagging, alerts, automation, and team-based permission settings, making it optimal for structured, ongoing collaborative scenarios.
SharePoint's automation and metadata capabilities significantly reduce manual management and streamline compliance efforts—exactly what you'd want in large, regulated environments.
Learn more about using SharePoint for file management and best practices for team collaboration and sharing.
On the other hand, OneDrive is optimized for individual file management. It’s perfect for drafting documents, storing meeting recordings, managing individual project files, or collaborating one-on-one. OneDrive’s sharing functionalities allow users to securely share files internally or externally, with granular control over access and permissions.
OneDrive also seamlessly integrates with other Microsoft applications like Outlook and Teams, providing a streamlined and user-friendly experience.
Learn more about using OneDrive for file management and best practices for admins.
To get the most out of SharePoint and OneDrive, here are some recommendations for using them effectively:
Choosing between SharePoint and OneDrive ultimately hinges on your organizational needs for collaboration, security, compliance, and individual productivity.
You need collaborative, team-based file management, including shared documents and intranet sites, with robust version control, enterprise-grade security, and compliance capabilities.
You need to work independently on personal projects or share files with a small group, using flexible, user-centric file management.
As an M365 admin, guiding your organization clearly on when and how to use each platform ensures streamlined productivity, enhanced security, and effective compliance management across your Microsoft 365 environment.