SharePoint vs OneDrive: Which One Does Your Business Really Need?

If your business uses Microsoft 365, you’ve likely come across SharePoint and OneDrive. At first glance, they seem similar—they both store files in the cloud and make them accessible anywhere. But here’s the catch: while they overlap, they serve very different purposes.

Choosing the right one (or more likely, the right combination) can make a big difference in how your team collaborates, secures data, and stays productive.

What Is OneDrive?

OneDrive is your personal cloud storage space within Microsoft 365. Think of it as your digital filing cabinet.

• Best for: individual work files

• Private by default—only you can see your files unless you decide to share them

• Seamlessly syncs files across devices (desktop, mobile, web)

• Great for draft work or documents you’re not ready to share

Example: You’re preparing a presentation for next week’s client meeting. You save it to OneDrive while you draft it, and once it’s finalized, you can share it with your manager or move it to SharePoint for team access.

What Is SharePoint?

SharePoint is your team collaboration hub. It’s designed for sharing, managing, and organizing documents across groups or entire organizations.

• Best for: team or company-wide files

• Shared by default within the site or team

• Integrates with Microsoft Teams for collaboration

• Can act as a central hub for policies, templates, and resources

Example: HR uploads company policies, onboarding materials, and forms to SharePoint so all employees can access the latest version without emailing files back and forth.

Key Differences Between SharePoint and OneDrive

Feature	OneDrive	SharePoint
Primary Purpose	Personal file storage	Team & organization collaboration
Default Sharing	Private to you	Shared with group/team
Best For	Drafts, personal work files, backups	Shared projects, policies, templates, team docs
Integration	Sync across devices	Deep integration with Teams
Governance	Limited admin control	Strong permissions & compliance features

Which One Does Your Business Really Need?

The truth is, you probably need both:

• Use OneDrive for personal files, works-in-progress, and anything not yet ready for collaboration.

• Use SharePoint for documents that need to be shared, collaborated on, or stored as official records for the team or company.

This way, you avoid the chaos of emailing attachments and ensure your team always has access to the latest version of files.

Final Thoughts

It’s not OneDrive vs SharePoint—it’s OneDrive and SharePoint working together. One handles your individual work; the other powers your team’s collaboration.

If you’re not sure how to structure file storage in Microsoft 365 for maximum security and productivity, we can help design a system tailored to your business.