Onedrive vs sharepoint: which one should my small business use?

Summary

This guide helps you troubleshoot and resolve: Onedrive vs sharepoint: which one should my small business use?. Follow the steps below to fix the issue.

Common Causes

Many small businesses moving away from local network drives and NAS devices face a common question: where should company files actually live in Microsoft 365? OneDrive for Business and SharePoint Online look similar at first glance, but they serve different purposes. Choosing the right location for your files prevents data silos, reduces sync conflicts, and ensures your team can collaborate on documents in real time without overwriting each other's work.

OneDrive for Business vs SharePoint Online

OneDrive for Business is designed for personal working files. It is your private storage space within Microsoft 365, tied to your individual user account. SharePoint Online is designed for team and organisational content. It acts as a central hub where multiple people can store, access, and collaborate on shared documents.

OneDrive for Business

• Personal file storage for individual employees
• Files are private by default unless you explicitly share them
• Ideal for drafts, working notes, and files not yet ready for team review
• Syncs to your computer via the OneDrive sync app

SharePoint Online

• Team and department file storage
• Files are owned by the site, not an individual
• Ideal for policies, procedures, client files, project documentation, and shared templates
• Integrates directly with Microsoft Teams channels
• Supports granular permission levels for site members, visitors, and owners

When to Use Each Location

Use OneDrive for Business when:

• You are drafting a document that is not ready for others to see
• You need a personal backup of your desktop or documents folders
• You are working on a file independently before moving it to a team location

Use SharePoint Online when:

• Multiple staff need to access and edit the same files
• You are storing company policies, HR documents, or financial templates
• You want files to remain accessible even if an employee leaves the organisation
• You are collaborating within a Microsoft Teams channel

Collaboration Benefits

Moving from rigid local network shares or NAS boxes to SharePoint Online and Teams unlocks several collaboration advantages for small businesses:

• Co-authoring: Multiple staff can edit the same Word, Excel, or PowerPoint file simultaneously, with changes appearing in real time.
• Autosave: Files save automatically to the cloud, reducing the risk of lost work.
• Version history: Previous versions of a file are retained, allowing you to restore an earlier draft if something goes wrong.
• Reduced sync conflicts: Because everyone works from the same cloud copy, you avoid many of the "Copy of Document" and conflicted copy problems common with NAS and local file servers. Note that sync conflicts can still occur with the OneDrive sync client, especially with simultaneous offline edits.

Permissions and Access

OneDrive permissions are managed at the individual file and folder level. You share specific items with colleagues by sending a link or granting direct access. If you leave the organisation, access to your OneDrive depends on your administrator's retention policies.

SharePoint permissions are managed at the site and library level. You can add members to a SharePoint site or Microsoft Teams team, and they inherit access to the associated document libraries. This makes it easier to onboard new staff and offboard departing employees without hunting through individual OneDrive accounts.

Migration Tips for Small Businesses

1. Confirm your Microsoft 365 subscription includes OneDrive for Business and SharePoint Online for your users.
2. Audit your current NAS or network share and identify which folders contain active team documents versus personal working files.
3. Create a SharePoint site structure that reflects your departments or major projects (for example, Administration, Sales, Client Projects).
4. Move shared team documents into the appropriate SharePoint document libraries.
5. Ask staff to move personal drafts and working files into OneDrive for Business.
6. Train your team to save new collaborative files directly to SharePoint or Teams channels rather than local drives.
7. Retire or archive the old NAS once you confirm all critical data has migrated and staff are comfortable with the new locations.

Getting Help

If you need assistance planning your migration from local network shares to Microsoft 365, configuring SharePoint permissions, or setting up OneDrive sync for your team, Open a Ticket and our Brisbane support team will help you get sorted.

If you host with us, you don't need to do this yourself — just Open a Ticket and our Brisbane team will get it sorted.

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