What is OneDrive?
Quick answer
OneDrive is Microsoft’s cloud storage for an individual’s files. Files saved there are private until you share them, sync across your devices, open in the Microsoft 365 apps and keep a version history. Free accounts get 5 GB; paid plans get much more.
Last updated
Updated · By Robert Breen
Why it matters
A file on a laptop’s desktop exists in one place and can be lost with that laptop. A file in OneDrive is backed up, opens on your phone and can be shared as a link, so the other person always sees the current version instead of a copy from last Tuesday.
OneDrive is also what makes features like AutoSave and co-authoring work: Excel, Word and PowerPoint can only save continuously and let several people edit at once when the file lives in the cloud.
A worked example
A freelance bookkeeper keeps each client’s working files in OneDrive, one folder per client. At month end she shares the "Acme reconciliation" workbook with Acme’s owner as view-only. He opens the link in a browser, sees the numbers and leaves a comment; he never receives an attachment, so there is no stray copy in his inbox.
When she finishes with the client, she stops sharing the folder. The link stops working for him straight away, which would be impossible with a file that had already been emailed.
Often confused with
OneDrive vs SharePoint
OneDrive is for files that belong to one person. SharePoint is for files that belong to a team, so they stay put when someone leaves. If a file would be a problem to lose when its author quits, it belongs in SharePoint.
OneDrive vs OneDrive for work or school
Same app, different accounts. Personal OneDrive comes with a Microsoft account; OneDrive for work or school is part of a business plan and is managed by the company’s IT admin.
Sharing a link vs attaching a file
An attachment is a copy that goes stale. A link points to the one live file and can be changed to view-only or switched off later. See shared link in the AI glossary for the general idea.
Tips
- Use view-only links unless the person really needs to edit.
- Check "Shared" in OneDrive now and then and stop sharing what is finished.
- Restore an older version from version history instead of keeping files named v1, v2 and v3.
Related terms
Learn it in a free lesson
- Microsoft 365 Explained: Which App Does What, Free vs Paid (about 8 minutes)
- Microsoft 365 Copilot for Beginners: Excel, Word, Outlook, Teams (about 12 minutes)
Related in the AI glossary
Sources
Written from these official help pages. Menus change, so if a button has moved, the help page has the current wording.
- Microsoft Support: Collaborating with Teams, SharePoint and OneDrive
- Microsoft Support: Collaborate on Excel workbooks at the same time with co-authoring
- Microsoft Support: What’s the difference between a paid Microsoft 365 subscription and the free web apps?
Frequently asked questions
- How much OneDrive storage is free?
- 5 GB with a free Microsoft account. Paid Microsoft 365 plans include much more, typically 100 GB to 1 TB per person, depending on the plan.
- Are OneDrive files private?
- Yes, until you share them. Only you can see files in your OneDrive unless you give someone access or send them a link.
- Where are files from Teams chats saved?
- Files you share in a one-to-one or group chat are stored in the sender’s OneDrive. Files shared in a channel are stored in the team’s SharePoint site.
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