OneDrive File Issues

How to Manage OneDrive and SharePoint Storage in Microsoft 365 Business Standard

Jason Miller Oct 14, 2026 870 views

Question details

Users need to understand how to allocate and share cloud storage effectively since individual OneDrive storage quotas cannot be transferred to other users.

How to Manage OneDrive and SharePoint Storage in Microsoft 365 Business Standard

Product: Microsoft 365 Business Standard
Device & OS: not provided
Scenario: Managing team files and individual user storage allocations within a business environment to maximize available space.
Observed behavior: Users attempt to transfer unused OneDrive storage to team members but find the 1 TB limit is strictly tied to individual accounts, requiring a different approach for shared data.

Before you start

Ensure you have Microsoft 365 admin privileges if you plan to review, configure, or migrate data to SharePoint site storage limits for your organization.

Solution 1Recommended

Utilize SharePoint Document Libraries for Team Collaboration

Since OneDrive storage cannot be transferred between users, use SharePoint for files that need to be accessed and edited by multiple team members.

Microsoft 365 Business Standard includes SharePoint Online, which is designed specifically for team collaboration. Unlike OneDrive, which is tied to an individual's account, SharePoint storage is pooled at the tenant level and shared across the organization.

Access SharePoint Admin Center

Log in to the Microsoft 365 Admin Center using your administrator credentials, then navigate to the SharePoint admin center to review site storage limits.

Create a Team Site

Set up a new SharePoint Team Site or Document Library dedicated to your specific department, team, or ongoing project.

Migrate Shared Files

Move existing shared company files from individual OneDrive accounts to the newly created SharePoint Document Library to centralize access.

Utilize SharePoint Document Libraries for Team Collaboration

Best Practice: Keeping company data in SharePoint ensures that crucial files are not lost or deleted if an individual employee leaves the organization and their OneDrive is deactivated.

Solution 2

Set Up a Shared Folder in a Single User's OneDrive

If you do not want to set up a SharePoint site, a single user can create a shared folder, though this will consume their personal 1 TB storage allocation.

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Frequently Asked Questions

Can I transfer unused OneDrive storage to another user in Microsoft 365?

No, Microsoft 365 Business Standard assigns a strict 1 TB OneDrive storage limit per licensed user. You cannot reallocate unused space from one user's quota to another user.

What happens to a shared OneDrive folder if the owner leaves the company?

If the account of the user hosting the shared folder is deleted, all files within that user's OneDrive—including the shared folder—will be permanently deleted after the default 30-day retention period. It is highly recommended to use SharePoint for critical company data.

How much SharePoint storage do I get with Microsoft 365 Business Standard?

Your organization receives 1 TB of base SharePoint storage, plus an additional 10 GB per licensed user purchased. This storage is pooled across your entire organization's tenant.

Can external guests upload files to my shared OneDrive folder?

Yes, if your organization's sharing settings allow external collaboration, you can share a folder with external users and grant them 'Edit' permissions. Any files they upload will count against your 1 TB personal OneDrive quota.

Document & File Issues