File Sharing Problems

How to Create a Shared Microsoft 365 Drive for External File Sharing

Maira Mehtab Sep 27, 2026 869 views

Question details

The user needs to set up a 2 TB shared workspace within Microsoft 365 to facilitate external file sharing for a business.

Product: Microsoft 365 (SharePoint and OneDrive)
Device & OS: not provided
Scenario: Creating a secure and spacious shared drive for external business collaboration and file distribution.
Observed behavior: The user requires guidance on properly configuring a Microsoft 365 shared workspace with a 2 TB capacity that fully supports external access policies.

Before you start

Before proceeding, ensure you have Microsoft 365 administrator privileges to configure external sharing settings, and verify your subscription's SharePoint storage limits can accommodate the required 2 TB.

Solution 1Recommended

Set up a SharePoint Document Library via OneDrive

Create a shared library directly through OneDrive for work or school, which automatically sets up a SharePoint document library for seamless external collaboration.

In Microsoft 365, shared workspaces are handled through SharePoint. By creating a shared library, you are establishing a SharePoint team site where files can be securely shared with external users, provided your organization's policies allow it.

Log into OneDrive

Create a Shared Library

Navigate to the left-hand panel and click on 'Create shared library' or 'Create new site' (depending on your specific Microsoft 365 layout). This initializes a SharePoint document library.

Configure Site Details

Name your shared workspace, add a description, and invite internal team members who need administrative or editing access.

Enable External Sharing

Go to the SharePoint admin center. Under 'Policies', select 'Sharing', and adjust the external sharing slider for SharePoint to allow 'New and existing guests' or 'Anyone'.

Verify Storage Capacity

In the SharePoint admin center, check your 'Active sites' storage limits to ensure your new site has access to the required 2 TB of space. You may need to allocate more storage depending on your subscription.

Storage Limits: SharePoint storage capacity varies by Microsoft 365 plan. Organizations typically receive a base of 1 TB plus 10 GB per licensed user. Additional storage may need to be purchased to meet the 2 TB requirement.

Free Microsoft Office alternative

Collaborate Easily with WPS Office and WPS Cloud

While Microsoft 365 requires administrative setup for external sharing, WPS Office provides a free, lightweight alternative. With built-in WPS Cloud, you can easily create, edit, and share documents with external partners without complex IT configurations.

1. Download and Install: Visit the official WPS website to download and install WPS Office on your device.
2. Save to WPS Cloud: Create your document and click 'Save As' to upload it directly to your personal WPS Cloud space.
3. Share Externally: Click the 'Share' button in the top right corner to generate a secure, permission-controlled link to send to external collaborators.

Fully compatible with Microsoft Word, Excel, and PowerPoint file formats.Lightweight design with a highly familiar, easy-to-use interface.Built-in WPS Cloud allows straightforward file sharing and real-time collaboration with external users.Free to download and use for all your core office productivity needs.

microsoft office alternative - wps office

Frequently Asked Questions

How much storage does a SharePoint team site get?

The available storage depends on your specific Microsoft 365 subscription. Generally, organizations receive 1 TB of base storage plus 10 GB per licensed user. If your business requires 2 TB, you may need to purchase additional SharePoint storage add-ons.

Can I share files with external users who don't have Microsoft 365?

Yes, you can share files with external users by generating 'Anyone with the link' links or by sending specific email invitations, provided your SharePoint administrator has enabled guest sharing in the admin center.

Why is external sharing disabled in my OneDrive or SharePoint?

External sharing is often disabled by default or restricted by your organization's IT department for security reasons. To enable it, an administrator must update the sharing policies under the 'Policies' section in the Microsoft 365 SharePoint admin center.

Document & File Issues