on onedrive

What You Should Know About Managing OneDrive in 2025

A recap of Drew Madelung’s session I attended from the Microsoft 365 Community Conference

At the 2025 Microsoft 365 Community Conference, Drew Madelung—Solutions Director at Protiviti—gave a standout presentation on how to effectively deploy, manage, and administer OneDrive. Whether you’re a seasoned admin or just dipping your toes into Microsoft 365, here’s a friendly breakdown of the key insights.

A Quick Refresher: What Is OneDrive?

OneDrive is more than just a place to store files. Under the hood, it’s actually built on SharePoint. Each user’s OneDrive? That’s really just a personal SharePoint site collection.

Think of OneDrive as the backbone for file storage across Microsoft 365—handling everything from solo work to shared team projects.

Where Admins Do Their Work

Managing OneDrive involves juggling a few different tools and consoles. Here's where the action happens:

  • SharePoint Admin Center – Set sharing rules, storage limits, and sync policies.
  • Microsoft 365 Admin Center – Handle user accounts, licenses, and delegated access.
  • Microsoft Defender & Purview – Apply retention policies, DLP, and compliance controls.
  • Group Policy or Intune – Customize sync client settings and control user behavior.

Lifecycle Planning: Not Just a Nice-to-Have

One of the most critical parts of OneDrive management is planning what happens when users leave. Here's what to keep in mind:

  • Files stick around for 30 days by default (you can bump it up to 10 years).
  • Access gets handed off to the user’s manager or another delegate.
  • Files go through a deletion timeline: user removal → retention → recycle bin → permanent delete.
  • Special attention is needed for shared files, meeting recordings, and content from tools like PowerApps.

Don’t Forget About Unlicensed Accounts

Unlicensed doesn’t mean inactive. Starting January 2025, Microsoft began enforcing new rules:

  • After 60 days without a license, accounts go read-only.
  • By day 93, they’re archived—unless you enable paid storage retention ($0.05/GB/month).
  • Need to bring data back? Temporary reactivation costs $0.60/GB.

Keeping Sync Under Control

The OneDrive sync client can be finely tuned for performance and control. Admins can:

  • Block or allow certain file types.
  • Restrict syncing to specific domains.
  • Set bandwidth limits.
  • Use Known Folder Move (KFM) to redirect key folders like Desktop and Documents.
  • Manage how updates are rolled out via the Insider, Production, and Deferred rings.

Sharing: It’s All About Balance

External sharing settings can be locked down or loosened within reason. You can:

  • Allow no external sharing, or limit it to existing or new guests.
  • Use anonymous links (with expiration dates).
  • Apply domain restrictions and control link permissions with precision.

Just remember: OneDrive settings can tighten global SharePoint policies, but not override them.

Reports That Matter

Want to stay on top of what's happening in OneDrive? Here are some useful tools:

  • Sync health reports (enable via policy first)
  • Governance reports showing link shares and sensitivity labels
  • Per-user sharing activity reports
  • Audit logs in the Microsoft 365 Admin Center

Pro Tips from the Presentation

Drew wrapped up with some smart recommendations:

  • Turn on Known Folder Move (KFM)—it’s a no-brainer for protecting user data.
  • Use “Add Shortcut” instead of syncing large team folders.
  • Keep an eye on unlicensed OneDrives to avoid surprise storage fees.
  • Enable sync health reporting to make troubleshooting easier.
  • Create a solid offboarding plan for when employees leave.
  • Stay ahead by following the OneDrive roadmap (hello Copilot integration and semantic search!).

Want to Learn More?

Final Thought:
Managing OneDrive well isn’t just about ticking boxes in the admin center—it’s about anticipating needs, protecting data, and setting up users for success. With the right planning and tools, OneDrive can become a seamless part of your organization’s workflow.