SharePoint vs OneDrive: When to Use Which

It's one of the most common questions we get in Microsoft 365 training: what's the difference between SharePoint and OneDrive? They both store files. They both sync to your computer. They both let you share documents. So why do we need both?

The confusion is understandable. Microsoft doesn't always make the distinction clear, and for many users who've been handed a Microsoft 365 account and told to get on with it, the differences can feel arbitrary. But understanding when to use which makes a genuine difference to how smoothly your team collaborates — and how easy it is to find things later.

The Simple Version

Here's the distinction in its simplest form:

OneDrive is for you. SharePoint is for the team.

Or as some Microsoft consultants put it: Me, We, Us.

• OneDrive = Me (your personal files)
• SharePoint team sites = We (collaborative work with your team)
• SharePoint communication sites = Us (publishing information to the wider organisation)

That's the mental model. Now let's dig into what that actually means in practice.

OneDrive: Your Personal Cloud Storage

OneDrive is your personal file storage in Microsoft 365. Think of it as your own corner of the cloud — a place to keep documents, drafts, notes, and anything else that's primarily for your own use.

Use OneDrive when:

• You're working on something that's not ready to share yet
• You're drafting a document before moving it to a shared location
• The files are genuinely personal to you — your own notes, templates, reference materials
• You need to access files across devices (OneDrive syncs seamlessly to your laptop, phone, tablet)
• You want to share something with a specific person without giving them access to a whole library

OneDrive is essentially an online folder system. It's straightforward, it syncs reliably, and it's always there when you need it. Every Microsoft 365 user gets their own OneDrive — it's not something you need to set up.

A note on sharing from OneDrive

You can share files from OneDrive. And sometimes that's exactly the right thing to do — if you're sending a document to someone for a quick review, or sharing a file with an external contact.

But here's the thing: when you share from OneDrive, you're sharing from your personal storage. If you leave the organisation, those files go with you (or get deleted). If the project grows and more people need access, you'll end up managing permissions manually on a file-by-file basis.

For anything that's genuinely collaborative — where multiple people need ongoing access, or where the work belongs to the team rather than to you personally — SharePoint is the better home.

SharePoint: Team Collaboration and Company Content

SharePoint is Microsoft's collaborative platform. It's where teams work together on shared documents, where company information lives, and where files that belong to the organisation (rather than to individuals) should be stored.

Behind the scenes, SharePoint actually powers more than you might realise. When you share files in a Teams channel, those files are stored in SharePoint. When you use Microsoft Lists or create a team in Microsoft Teams, there's a SharePoint site running underneath.

Use SharePoint when:

• Multiple people need to collaborate on documents
• The work belongs to the team, department, or organisation — not just to you
• You need version history, approval workflows, or document management features
• You want to publish information for others to read (policies, handbooks, news)
• The files need to persist even when individual team members leave

Team sites vs communication sites

SharePoint has two main types of sites:

Team sites are for collaboration. Everyone in the team typically has edit access, and the focus is on getting work done together. Team sites are connected to Microsoft 365 Groups — so when you create a team in Microsoft Teams, you automatically get a SharePoint team site.

Communication sites are for publishing. They're designed for sharing information with a wider audience — company news, departmental updates, policy pages. Most people have read-only access; only a few people publish content.

The distinction matters. A team site for the Marketing department is where Marketing does its work. A communication site for Marketing might be where they publish brand guidelines for the rest of the company.

Where Things Get Confusing

The confusion usually arises because OneDrive and SharePoint look similar. They both appear in File Explorer when you sync them. They both show up in the Office apps when you save files. And Microsoft keeps adding features that blur the lines — like being able to share from OneDrive or add shortcuts to SharePoint libraries in your OneDrive.

Here are the most common points of confusion:

'My OneDrive shows SharePoint files'

This is probably because you've added a shortcut to a SharePoint library, or you've synced a SharePoint document library to your computer. OneDrive acts as the sync client for both OneDrive and SharePoint — which is convenient, but can make it harder to tell where files actually live.

'I shared a file from OneDrive and my colleague can't find it'

When you share from OneDrive, the file stays in your OneDrive. Your colleague gets a link to your copy. If they save it somewhere else, it becomes a separate copy. If they need ongoing access, they'll need to remember where to find it — or you'll need to share it again.

With SharePoint, the file lives in a shared location from the start. Everyone accesses the same copy in the same place.

'I saved a file in Teams — where did it go?'

Files shared in Teams channels are stored in SharePoint. Each channel has a folder in the team's SharePoint document library. You can access them through Teams (in the Files tab) or through SharePoint directly.

Files shared in Teams chats, on the other hand, are stored in OneDrive. That's because chats are personal — they're between you and specific people, not the whole team.

A Practical Decision Framework

When you're about to save or share a file, ask yourself:

1. Who needs access? Just you, or the team?
2. How long will they need it? Quick review, or ongoing collaboration?
3. What happens when you leave? Does the file belong to you or the organisation?
4. Will multiple people edit it? Simultaneously or over time?

If it's just you, or it's a quick share with one person, OneDrive is fine. If it's team work that needs to persist, SharePoint is the better choice.

The Bottom Line

OneDrive and SharePoint aren't competing — they're complementary. OneDrive gives you a personal space to work. SharePoint gives your team a shared space to collaborate. The trick is knowing when to use which.

Get it right, and everything is easier to find. Collaboration flows smoothly. Files don't get lost when people leave. Get it wrong, and you end up with documents scattered across personal drives, shared links that break, and the eternal question: 'where did we save that again?'

It's a small thing that makes a big difference.

Need help getting your team up to speed on Microsoft 365? Our training covers not just the features, but the practical workflows that make them work. Get in touch to find out more.