Microsoft 365 Migration

OneDrive vs. SharePoint: Where to Store Company Shared Folders

Camila Milosovich Oct 9, 2026 868 views

Question details

The user needs to understand whether to use OneDrive or SharePoint for storing shared company files, how Microsoft 365 pooled storage is managed, and how to migrate existing file servers.

OneDrive vs. SharePoint for Company Shared Folders

Product: Microsoft 365
Device & OS: not provided
Scenario: Migrating company data from a local file server to Microsoft 365 and configuring a cloud-based storage hierarchy.
Observed behavior: Seeking a clear strategy on organizing departmental files in SharePoint document libraries versus individual OneDrive accounts, and managing storage capacity.

Before you start

Before migrating your company files, ensure you have SharePoint Administrator or Global Administrator permissions in Microsoft 365 to configure document libraries and view storage metrics.

Solution 1Recommended

Use SharePoint Document Libraries for Shared Company Files

Always store departmental and team files in SharePoint rather than individual OneDrive accounts to ensure continuity and pooled storage.

OneDrive is designed for personal work files with an individual storage quota (typically 1 TB per user). If an employee leaves, managing their OneDrive files becomes difficult.

SharePoint uses the organization's pooled storage allocation and is purpose-built for company-wide or departmental shared folders.

Create SharePoint Sites

Log in to the Microsoft 365 admin center, navigate to the SharePoint admin center, and create dedicated team or communication sites for different departments.

Set Up Document Libraries

Within each departmental SharePoint site, create 'Document Libraries'. These act as the cloud equivalent of your legacy shared network drives.

Configure Permissions

Assign access rights to Microsoft 365 Groups or specific users to ensure that only authorized personnel can access or edit the shared folders.

Use SharePoint Document Libraries for Shared Company Files

Pooled Storage Advantage: By using SharePoint, your files consume the organization's pooled storage capacity rather than individual user quotas, ensuring better scalability as your company grows.

Solution 2

Migrate Data Using the SharePoint Migration Tool

Utilize Microsoft's official migration tool to seamlessly transfer files from your local server to SharePoint.

Solution 3

Monitor SharePoint Storage Capacity

Administrators must regularly monitor the pooled storage usage in the admin center to prevent service disruptions.

Free Microsoft Office alternative

Edit Your Shared Cloud Documents Efficiently with WPS Office

After migrating your company files to a cloud environment like SharePoint, you need a fast and reliable office suite to handle daily document tasks. WPS Office is a lightweight, free alternative that offers seamless compatibility with standard Microsoft Office files stored in the cloud.

1. Download WPS Office: Install the free WPS Office suite from the official website on your desktop or mobile device.
2. Open Cloud Files: Navigate to your synced SharePoint or OneDrive folders on your computer and double-click to open them instantly in WPS Office.
3. Edit and Collaborate: Make your edits securely. Changes will automatically sync back to your SharePoint document library if you are using the OneDrive sync client.

Fully compatible with Microsoft Office formats like .docx, .xlsx, and .pptx commonly stored in SharePoint.Lightweight installation ensures fast performance even on older devices.Familiar user interface requires no retraining for your employees after migration.Comprehensive suite including Writer, Spreadsheet, Presentation, and PDF editor.

microsoft office alternative - wps office

Frequently Asked Questions

Can I use OneDrive for company shared folders instead of SharePoint?

While possible, it is highly discouraged. OneDrive is tied to an individual user's account. If that employee leaves the company and their account is deleted, the shared files could be lost. SharePoint sites are independent of individual accounts, making them secure and permanent homes for company data.

How is Microsoft 365 SharePoint storage capacity calculated?

SharePoint storage is pooled across the organization. It typically includes a base allocation (e.g., 1 TB) plus an additional amount (such as 10 GB) per licensed user, depending on your subscription plan like Microsoft 365 E3.

What happens if we run out of SharePoint storage?

If your organization exceeds its pooled storage limit, users may be unable to upload new files or edit existing ones. Administrators will need to purchase additional storage capacity through the Microsoft 365 admin center or delete unnecessary files to free up space.

Migration & Recovery