SharePoint & OneDrive

SharePoint vs OneDrive: the core difference

OneDrive is personal file storage — each user gets their own OneDrive, and files stored there are owned by that individual. SharePoint is shared file storage — it's designed for team and organisational content that multiple people need to access and collaborate on.

The confusion arises because both sync to your desktop via the OneDrive sync client, so they look identical in Windows Explorer. But the underlying architecture, permissions model, and governance implications are very different.

When to use each

The right tool depends on who needs access:

• OneDrive — personal work files, drafts, documents only you need, files you're working on before sharing
• SharePoint team sites — departmental content, project files, documents the whole team needs
• SharePoint communication sites — company-wide content, policies, announcements, intranet pages
• Microsoft Teams — Teams automatically creates a SharePoint site for each team; files shared in Teams live in SharePoint

The governance decisions that matter

Left unmanaged, SharePoint environments become sprawling and ungovernable. The key decisions to make upfront are: who can create new SharePoint sites and Teams (if everyone can, you end up with hundreds of abandoned sites), how long content is retained, and who can share externally.

External sharing is the highest-risk setting. SharePoint can be configured to allow sharing with anyone via a link — which means a staff member can accidentally share sensitive documents with the entire internet. External sharing settings should be reviewed and locked down as part of any Microsoft 365 deployment.

Structuring your SharePoint environment

A well-structured SharePoint environment has a clear hierarchy: a small number of team sites for each department or major project, a communication site for company-wide content, and clear naming conventions so people can find what they're looking for.

The most common mistake is creating too many sites too quickly. Start with the minimum viable structure — one site per department — and add more only when there's a clear need. Sites that are created and then abandoned are harder to manage and create governance headaches.

Migration from file servers

Migrating from a traditional file server to SharePoint and OneDrive is one of the most common IT projects for Canberra businesses. Done well, it eliminates the need for on-premises file servers, enables remote access without VPN, and provides version history and co-authoring.

Done poorly, it recreates the same folder structure that made the file server hard to navigate, with the added complexity of SharePoint permissions on top. A migration is an opportunity to rationalise your file structure — not just lift and shift.

Keeping it manageable long-term

SharePoint governance is an ongoing activity, not a one-time setup. Regular reviews of external sharing, site ownership, and inactive sites keep the environment manageable. Sensitivity labels applied to documents ensure that confidential content is protected regardless of where it's stored or shared.

I.T.S Canberra designs and implements SharePoint environments for Canberra businesses, including migration planning, governance policy design, and ongoing management.