OneDrive vs SharePoint — What's the Difference?
SharePoint / OneDrive
OneDrive
SharePoint
difference
storage
files
collaboration
By Kerry · Updated 03/04/26 10:41 PM
OneDrive and SharePoint are both cloud file storage tools included with Microsoft 365, but they serve different purposes. Here's how to know which to use.
OneDrive — Your personal cloud storage
Think of OneDrive as your personal work hard drive in the cloud.
- Files stored here are yours — only you can see them by default
- Syncs to your PC so files are available offline
- 1TB of storage per user (included with most Microsoft 365 plans)
- Best for: your own documents, drafts, work-in-progress files you're not ready to share
SharePoint — Team file storage and collaboration
Think of SharePoint as a shared network drive for your team or company.
- Files stored here are accessible to your whole team (based on permissions)
- Multiple people can work on the same file simultaneously
- Version history is maintained for all files
- Best for: shared documents, company-wide files, team projects, files that multiple people need to access
How they connect:
- When you sync a SharePoint library to your computer, it shows up in File Explorer just like OneDrive — but the files are actually shared with your team
- Microsoft Teams stores all its files in SharePoint behind the scenes — when you share a file in Teams, it's in SharePoint
Which should I use?
- "I'm working on this by myself" → OneDrive
- "My team needs to access this" → SharePoint (or a Teams channel)
- "I want to share with one specific person temporarily" → OneDrive (share > specific person)
Common mistake to avoid:
Don't store business-critical shared files in your personal OneDrive. If you leave the company or your account is deleted, those files go with you. Shared files belong in SharePoint/Teams.