License & Subscription Issues

Microsoft 365 Business vs OneDrive for Small Business Storage

Guest Writer Oct 10, 2026 869 views

Question details

A small business needs to decide between Microsoft 365 Business and OneDrive for establishing a centralized company cloud storage system with employee access permissions.

Microsoft 365 Business vs OneDrive for Small Business Storage

Product: Microsoft 365
Device & OS: not provided
Scenario: Setting up a shared storage location for an entire company where employees only access the information they need, avoiding separate personal storage silos.
Observed behavior: The organization is seeking a centralized storage solution with permission controls instead of relying on individual, unmanaged personal storage for each user.

Before you start

Identify the organizational structure of your company to determine how many distinct departments or project teams will require isolated, permission-based document libraries.

Solution 1Recommended

Use Microsoft 365 Business with SharePoint for Centralized Storage

Deploy SharePoint (included in plans like Microsoft 365 Business Standard) to create a single shared storage location with granular organizational permissions.

While OneDrive is designed primarily for personal cloud storage and one-on-one file sharing, SharePoint is built specifically for team collaboration and organization-wide file management.

By utilizing SharePoint, an organization can create shared sites and libraries. This ensures that company data remains centralized and accessible according to specific employee permissions, even if an individual user leaves the company.

Select the Right Plan

Subscribe to a plan such as Microsoft 365 Business Standard, which includes Microsoft 365 applications, 1 TB of OneDrive storage per user, and SharePoint access.

Create a SharePoint Team Site

Log into the Microsoft 365 admin center, navigate to the SharePoint admin center, and create a new Team Site for your company's shared files.

Configure Document Libraries

Within the new SharePoint site, set up different Document Libraries corresponding to your company's departments or projects.

Assign Granular Permissions

Access the 'Site Permissions' or 'Library Settings' to assign access rights. Specify which employee groups have Read, Contribute, or Full Control access to ensure employees only view the information they need.

Scalable Infrastructure: Using SharePoint establishes a scalable foundation for business growth, preventing the data-loss risks associated with keeping company files on personal OneDrive accounts.

Solution 2

Understand the Role of OneDrive in a Business Environment

Allocate OneDrive specifically for employees' individual work files rather than treating it as a shared company server.

Free Microsoft Office alternative

Explore WPS Office for Seamless Business Document Collaboration

If you are evaluating Office suites and cloud file management for your small business, WPS Office offers a lightweight, highly compatible alternative to Microsoft Office. It seamlessly opens Microsoft formats and integrates with multiple cloud drives for easy file sharing and teamwork.

1. Download the Installer: Visit the official WPS website to download the free, lightweight WPS Office suite.
2. Install and Launch: Run the installer and follow the quick on-screen instructions to deploy the software on your device.
3. Connect Cloud Storage: Open the application, navigate to the 'Open' menu, and link your preferred third-party cloud storage to easily access shared company documents.

Highly compatible with Microsoft Word, Excel, and PowerPoint formats (.docx, .xlsx, .pptx).Lightweight installation with a familiar, easy-to-use interface requiring minimal training.Cost-effective solution for small businesses needing core office tools.Built-in cloud integration for smoothly saving, editing, and sharing files directly from the app.

microsoft office alternative - wps office

Frequently Asked Questions

Can I use OneDrive for company-wide shared storage?

While you can technically share folders in OneDrive with everyone in the company, those folders remain tied to an individual user's account. If that employee leaves, managing those files becomes difficult. SharePoint is the recommended solution for centralized, company-wide storage.

What is the primary difference between OneDrive and SharePoint?

OneDrive is designed for personal work files and one-off sharing, providing individual cloud storage for each user. SharePoint is built for team collaboration, providing shared sites, document libraries, and structured, organization-wide access permissions.

Does Microsoft 365 Business Standard include SharePoint?

Yes, Microsoft 365 Business Standard includes full Microsoft 365 applications, 1 TB of OneDrive storage per user, and SharePoint, allowing you to build shared organizational sites and manage company data effectively.

Login & Account Issues