logo
search
Microsoft 365 Migration

How to Sync an On-Premises File Server with SharePoint

Nimra MalikNimra Malik Oct 9, 2026 869 views

Question details

The user wants to synchronize files between an on-premises file server and SharePoint to enable remote collaboration and manage permissions while minimizing local storage usage.

How to Sync an On-Premises File Server with SharePoint
Product
SharePoint Online
Device & OS
not provided
Scenario
Migrating or syncing local server data to the cloud for remote team access without overwhelming local device hard drives.
Observed behavior
Files need to be accessible both remotely via SharePoint and locally, retaining existing permissions while leveraging cloud storage optimizations.
Before you start

Check your Microsoft 365 administrator permissions and ensure your organization's Active Directory is synchronized with Azure AD so you can successfully retain file and folder permissions during the move.

Solution 1Recommended

Migrate Files to SharePoint and Enable Files On-Demand

Use the SharePoint Migration Tool (SPMT) to move your data to the cloud, then use the OneDrive sync app to provide seamless desktop access without taking up local disk space.

SharePoint Online does not natively support a continuous, real-time two-way sync with standard local file servers. The most reliable approach is to migrate your local files entirely to SharePoint and rely on the OneDrive sync client for desktop access.

1
Download the SharePoint Migration Tool

Download and install the SharePoint Migration Tool (SPMT) from the official Microsoft 365 admin center onto your local server.

2
Configure Source and Destination

Launch SPMT, sign in with your Microsoft 365 global admin credentials, select your local file share as the source directory, and choose the target SharePoint site and document library.

3
Migrate Files and Permissions

Follow the on-screen prompts to map your users and start the migration process. SPMT will preserve your existing file and folder permissions if your Active Directory is synced.

4
Sync with OneDrive

Once the migration is complete, instruct users to navigate to the new SharePoint document library in their web browser and click the 'Sync' button in the top menu to connect it to their local File Explorer or Mac Finder.

5
Enable Files On-Demand

Open the OneDrive client settings on user devices, navigate to the 'Sync and back up' tab (or 'Settings' in older versions), and toggle on the 'Files On-Demand' feature. This ensures files are kept in the cloud and only downloaded when opened, saving local storage.

Migrate Files to SharePoint and Enable Files On-Demand
Hybrid Deployments: If you are running an on-premises SharePoint Server rather than a standard Windows file server, you can set up a SharePoint Hybrid environment for a more integrated connection with SharePoint Online.
Free Microsoft Office alternative

Simplify Team Collaboration with WPS Office

Complex server migrations and hybrid SharePoint environments can be overwhelming to configure. WPS Office provides an easy-to-use, unified workspace with built-in cloud storage for seamless team collaboration, allowing you to bypass heavy infrastructure setups.

  1. 1. Download WPS Office: Install WPS Office on your desktop or mobile device to access the unified workspace.
  2. 2. Set Up Your Cloud Team: Sign in and create a Team in WPS Cloud to start centralizing your organization's files without needing a local server.
  3. 3. Collaborate in Real Time: Upload your documents and share secure links with team members for seamless co-editing and remote access.
Free, lightweight, and incredibly easy to deploy across your entire teamHighly compatible with Microsoft Word, Excel, and PowerPoint file formatsBuilt-in WPS Cloud enables real-time remote collaboration and document sharingGranular permission settings to securely manage team access to shared files
microsoft office alternative - wps office

Frequently Asked Questions

Can I set up a real-time two-way sync between a standard local file server and SharePoint Online?

Out-of-the-box SharePoint Online does not support a native, real-time two-way sync with a standard local file server. The recommended path is to migrate the files completely to SharePoint and use the OneDrive sync client, or configure a SharePoint Hybrid environment if you use an on-premises SharePoint Server.

How do I prevent synced SharePoint files from taking up all my local hard drive space?

You need to enable the 'Files On-Demand' feature in the OneDrive sync application. This feature ensures that files are stored in the cloud and appear as shortcuts on your computer, only downloading the actual file data when you double-click to open them.

Will my local file server permissions be preserved when moving to SharePoint?

Yes, if you use the Microsoft SharePoint Migration Tool (SPMT), it can preserve your Active Directory file and folder permissions during the migration, provided your on-premises Active Directory is properly synchronized with Azure AD.

Are there other Microsoft alternatives to syncing an on-premises file server to the cloud?

Yes, Azure File Sync is a popular alternative that allows you to centralize your file shares in Azure Files while keeping the flexibility and performance of an on-premises Windows Server acting as a rapid cache.