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Microsoft 365

OneDrive vs. SharePoint: Which Should You Use and When?

Published 26 May 2026
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If you’ve ever stared at a Save dialogue and wondered whether to choose OneDrive or SharePoint, you’re in good company. Both live inside Microsoft 365, both store files in the cloud – but they’re built for quite different things. Here’s a straightforward way to think about it.

OneDrive is Your Personal Space

Think of OneDrive as your digital desk drawer. It’s where your own files live – drafts you’re still working on, personal documents, anything that’s yours and yours alone. You can share individual files or folders with colleagues when you need to, but it’s not designed for ongoing team collaboration.

SharePoint is Built for Teams

SharePoint is where your business stores the things everyone needs access to. Shared templates, company policies, project folders, client files – if it belongs to the team rather than one person, SharePoint is the right home for it. It’s also where Teams channels store their files behind the scenes, so there’s a good chance you’re already using it without realising.

When Things Get Blurry

The confusion often comes from the fact that files can move between the two, and both appear in your Files tab in Teams. A simple rule of thumb: if you’d be the only one upset if it disappeared, it belongs in OneDrive. If a colleague would struggle without it, it belongs in SharePoint.

Getting Your File Structure Right

A well-organised SharePoint is one of the most valuable things you can set up in Microsoft 365. It saves time, reduces duplication, and means your team always knows where to look. If yours has grown a bit chaotic over time, it’s never too late to tidy things up.

Not sure where to start? We can help you map out a structure that works for your business. Give us a shout.

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