If your Perth business uses Microsoft 365, you have access to both SharePoint and OneDrive. Most businesses use one, ignore the other, or mix them up in ways that cause confusion. Here's the plain-English version of what each is for - and how to use them together properly.
The Simple Rule
OneDrive is for your personal work files. SharePoint is for team files.
That's the core distinction. Everything else flows from it. If a file belongs to you and you're the only one who needs it regularly, it lives in OneDrive. If a file belongs to a team, department, or project - and multiple people need to access it - it lives in SharePoint.
What Is OneDrive?
OneDrive is your personal cloud storage within Microsoft 365 - think of it as your work hard drive that lives in the cloud. Each user in your organisation gets their own OneDrive. Files stored there are private by default; you can share individual files or folders with colleagues, but the storage belongs to you.
Common uses:
- Drafts and work in progress before sharing with the team
- Personal reference files (notes, templates you've built, research)
- Files you need to access across multiple devices
Importantly: when a staff member leaves, their OneDrive goes with them (after an admin grace period). Storing critical business files in someone's personal OneDrive is a common and costly mistake.
What Is SharePoint?
SharePoint is your organisation's shared file storage - the modern replacement for the old office file server. Files in SharePoint belong to the business, not to any individual, and can be accessed by the whole team (or specific groups) regardless of who created them.
In practice, SharePoint is the backbone of Microsoft Teams. Every Teams channel has a SharePoint document library behind it - when you upload a file to a Teams channel, it's actually stored in SharePoint.
Common uses:
- Shared company documents - policies, procedures, templates, contracts
- Project files the whole team collaborates on
- Department-specific storage (Finance, HR, Operations folders)
- Any file that needs to survive staff turnover
Why Most Perth Businesses Get This Wrong
The most common mistake: staff save everything to their personal OneDrive because it's the default when they open Word or Excel. Over time, critical business files are scattered across individual accounts, nobody can find anything, and when someone leaves, files disappear with them.
The second common mistake: using SharePoint like a dumping ground with no structure. SharePoint needs a logical folder hierarchy and naming convention - otherwise it becomes the digital equivalent of a messy storeroom.
How to Structure Them Together
A practical setup for a Perth SMB:
- SharePoint: Create a single company site (or one per department for larger teams). Structure it like a well-organised filing cabinet - top-level folders by department or function, consistent naming conventions, and a clear rule that anything shared belongs here
- OneDrive: Personal workspace only. Staff can work on drafts here and move them to SharePoint when ready for the team
- Microsoft Teams: Create a Team for each department or ongoing project. The Files tab in each channel is your SharePoint library - staff never need to think about SharePoint separately
Permissions - Keep It Simple
SharePoint supports complex permission structures, but for most Perth SMBs, simple is better. Give all staff read access to general company files, and limit edit access to those who actually need it. Avoid giving everyone full control - it leads to accidental deletion and version chaos.
Frequently Asked Questions
What happens to a staff member's OneDrive files when they leave?
Their OneDrive goes with them after an admin grace period, which is exactly why business-critical files shouldn't live there in the first place. Anything that needs to survive staff turnover, like shared documents, templates, or project files, belongs in SharePoint instead.
If we use Microsoft Teams, do we even need to think about SharePoint separately?
Not really day to day, every Teams channel has a SharePoint document library sitting behind it, so when someone uploads a file to a Teams channel it's actually being stored in SharePoint automatically. Staff can just use Teams normally, it's really only the initial setup and folder structure that needs deliberate thought.
Should staff save drafts in OneDrive or SharePoint?
OneDrive is generally the better spot for drafts and work in progress that only one person needs, since it's private by default. Once the file is ready for the team, it should move into SharePoint so it's not sitting in a personal account nobody else can see.
How complicated do SharePoint permissions need to be?
For most small and medium Perth businesses, simple is better. Giving all staff read access to general company files and limiting edit access to those who actually need it avoids the accidental deletions and version confusion that come with everyone having full control.
Structuring SharePoint and OneDrive correctly from day one is part of the Microsoft 365 setup we deliver for Perth businesses.
Microsoft 365 & Cloud →Need help setting up Microsoft 365 properly for your Perth team?
Call 0433 087 091 - we'll design and migrate your file storage so your team can actually find what they need.
Book a Microsoft 365 ConsultationFor related reading, see our guides to Jamf vs Intune - Which MDM Is Right for Your Business? and In-House IT vs Managed IT: Which Is Right for Your Perth Business?.