A plain-English deep dive into Microsoft SharePoint Online and OneDrive for Business for Australian small and mid-sized businesses. Explains the difference between the shared team space (SharePoint) and each person's private cloud drive (OneDrive), how they replace an on-premise file server and consumer Dropbox, co-authoring, version history, sync and Files On-Demand, external sharing, permissions, indicative AUD pricing, honest downsides like sync conflicts and the fact that version history is not a backup, and how StartCloud plans and migrates a file server the right way.
Microsoft SharePoint & OneDrive: where your business files should actually live
Most businesses have files everywhere. A server in the cupboard, a bit of Dropbox, folders on people's desktops, a couple of USB sticks. Here is how the two Microsoft 365 tools you already pay for bring it all into one tidy, secure home.
The short version
SharePoint is the shared filing cabinet your whole team uses. OneDrive is your own private drawer. Both live in the cloud, both sync to your computer, and together they replace the old file server and the consumer Dropbox habit.
SharePoint Online holds your shared work: team sites, document libraries and the storage behind every Microsoft Teams team. OneDrive for Business gives each person around 1TB of their own space for work in progress, with easy, controlled sharing when you need it.
Both come bundled in Microsoft 365 Business Standard and Business Premium, so most Perth businesses already own them. This guide explains what they do, where your files should live, and how to set them up without the usual mess.
Prices in this guide are indicative AUD figures current as of July 2026 and are subject to change. Always confirm with your licensing partner before purchase.
Two tools, one simple split
People muddle these two together all the time, so let us keep it plain. Think of your business files as a big filing cabinet. SharePoint is the shared part of that cabinet, the drawers the whole team opens. OneDrive is your own private drawer, the one only you use. Same cabinet, same building, different purpose.
Both live in Microsoft's cloud alongside your email and Teams. Both sync down to your laptop so the files feel like normal folders. The only real question is: is this file for the team, or is it mine? Team file goes in SharePoint. Your own work goes in OneDrive. That one habit keeps everything in the right place.
SharePoint Online
The shared team space
The filing cabinet the whole team shares.
Document libraries, team sites and your company intranet. Every Microsoft 365 Group and every Microsoft Teams team has a SharePoint site sitting behind it, which is where the files actually live. This is where shared work belongs: the projects, the client folders, the templates, the policies everyone needs to reach.
- Team document libraries the whole group can open at once
- The storage behind every Team and Microsoft 365 Group
- Company intranet and news pages
- Permissions set per site, library or folder
OneDrive for Business
Your own cloud drive
Your own private drawer in that cabinet.
Each person gets roughly 1TB of their own cloud storage. It replaces the old 'My Documents' folder and the habit of saving straight to the desktop. Work in progress, drafts and personal work files live here. You can share any file out when you need to, but by default only you can see it.
- Around 1TB of private storage per person
- Syncs to the laptop so files are there offline
- Share a file or folder with a link when needed
- Follows the person, not the device
The Teams connection worth knowing: every team you create in Microsoft Teams quietly creates a SharePoint site behind it. When you drop a file in a Teams channel, it lands in SharePoint. So if you use Teams, you are already using SharePoint. Understanding that link is what keeps Teams tidy instead of turning it into a junk drawer.
From scattered to sorted
Here is the whole idea in one picture. The old scattered storage on the left flows into two clear homes in the cloud, and from there syncs back down to every device your team uses.
The old way
SharePoint
Shared team files, sites, the storage behind Teams
OneDrive
Each person's own ~1TB private drive
Synced to every device
One shared home, one private home, both in the cloud and both on every device. That is the whole model. The rule of thumb: if the team needs it, it goes in SharePoint. If it is your own work, it goes in OneDrive.
| How much storage you get | The detail |
|---|---|
| SharePoint (team storage) | 1TB pooled across the whole tenant, plus 10GB for every licensed user added to the pool. A 30-person business starts with roughly 1.3TB of shared space and can buy more if needed. |
| OneDrive (personal storage) | Around 1TB per user by default. Plenty for documents, drafts and everyday work. It is personal space, so it is not meant to be where the whole team's shared files live. |
What you actually get
Beyond 'files in the cloud', here is what makes SharePoint and OneDrive genuinely better than a mapped drive, in plain terms.
Version history on every file
Every save keeps the previous version. Someone overwrites a quote, deletes half a spreadsheet, or a document gets scrambled? Right-click, open version history, restore the good copy. No calling IT, no hunting through email attachments for the last good version.
Real-time co-authoring
Two or three people can work in the same Word doc or Excel sheet at the same time and see each other's changes live. This is the end of 'Final_v3_JAN_actual_FINAL.docx'. There is one file, one version, and everyone is always looking at the current one.
Sync client and Files On-Demand
The OneDrive sync client puts your SharePoint libraries and personal drive right in File Explorer or Finder, so they behave like a normal folder. Files On-Demand shows everything but only downloads a file when you open it, so you are not filling your laptop with gigabytes you rarely touch.
External sharing controls
Share a single file or a whole folder with a client or supplier by link. You control whether the link needs a sign-in, expires on a date, or is view-only. No more emailing sensitive attachments around and losing track of who has them.
Search across everything
Search reaches inside documents, not just file names. Type a client name or a phrase from a contract and it finds the file, even a PDF, wherever it sits and whoever owns it (as long as you have permission to see it). Finding a file stops depending on someone remembering the folder it was filed in.
Permissions and retention
Access is controlled per site, library, folder or individual file. You decide who can edit, who can only read, and who sees nothing at all. Retention policies can keep or automatically clear out files on a schedule, which matters for records-keeping and compliance.
How sharing a file actually works
The good bits
- The file never leaves your control
- You can see who has access and revoke it
- The link can expire on its own
- You always share the current version
The old way: an email attachment
- A copy leaves your business for good
- You cannot un-send it or track it
- The recipient may forward it anywhere
- It is a stale copy the moment you edit yours
Pros and cons
We set these up for a living, so here is the honest picture, including the parts that bite people who rush the setup.
What works well
- It replaces the old file server. No box in the cupboard to patch, back up or replace every five years. Your files are in Microsoft's data centres with your other Microsoft 365 services.
- Files are reachable from anywhere. Office, home, a client site, a phone on the train. Same files, same permissions, no VPN gymnastics to get to the shared drive.
- Version history and co-authoring end the 'which copy is right' problem. One live file, a full history of changes, and the ability to roll back a bad edit in seconds.
- Already included in the licences most Perth businesses hold. If you are on Business Standard or Business Premium, you are paying for SharePoint and OneDrive whether you use them well or not.
- Sharing with clients is controlled and trackable. A link with an expiry beats an attachment you can never un-send.
- It scales with the team. Add a person, they get their 1TB and access to the right sites. No re-sizing a server.
Where it bites if you rush it
- Sync conflicts happen if it is set up wrong. If people sync huge libraries they do not need, or two people edit the same non-Office file offline, you get conflict copies. Good structure and Files On-Demand prevent almost all of this.
- Permissions get messy without governance. It is easy to share a folder 'just this once' and forget. Over a couple of years, nobody is sure who can see what. This needs a plan and the occasional tidy-up, not a free-for-all.
- Deeply nested folders and very long file paths cause real pain. A folder ten levels deep with long names can hit path length limits and break the sync client. Flatter structures and shorter names save a lot of grief.
- Version history and the recycle bin are NOT a backup. They protect against an accidental edit or a deletion you catch quickly. They do not protect you from ransomware that runs for a week, or a deletion nobody notices for two months. You still need a proper backup.This is exactly why we pair Microsoft 365 with a backup and disaster recovery plan.
- The structure needs planning up front. Tip your old file server in as-is and you carry twenty years of mess into a new home. A short planning exercise before migration is the difference between a clean start and the same chaos in the cloud.
Pricing in real Perth dollars
The good news for most businesses: you probably already own this. SharePoint and OneDrive are bundled into the Microsoft 365 licences most Perth SMBs already pay for. You do not buy them separately, you just need to set them up properly.
| Option | Approximate AUD cost | What you get |
|---|---|---|
| Microsoft 365 Business Premium | ≈ $33 AUD/user/month (ex GST) | The full stack: Office apps, SharePoint, OneDrive, Teams, Exchange, plus the security layer (Intune, Entra ID P1, Defender for Business). Our usual recommendation for a Perth SMB that takes security seriously. |
| Microsoft 365 Business Standard | ≈ $21 AUD/user/month (ex GST) | Office apps, SharePoint, OneDrive, Teams and Exchange. Everything in this guide is included. It just does not carry the extra security tooling that Premium adds. |
| SharePoint / OneDrive Plan 1 (standalone) | ≈ $8 AUD/user/month | SharePoint and OneDrive on their own, without the Office apps. Worth knowing: Microsoft has stopped selling these standalone plans to new customers and is winding them down, so for most businesses Standard or Premium is the sensible path anyway. |
For a 30-person business already on Business Standard or Business Premium, there is no extra licence to buy to start using SharePoint and OneDrive well. The real investment is in planning the structure, moving the files across cleanly, and training the team. That is where a good setup earns its keep. For the fuller picture on Premium and its security tooling, see our Business Premium deep dive.
Indicative figures only, and prices shifted for many Australian customers from 1 July 2026. Figures shown are ex GST and vary with billing terms and your agreement. Confirm with your licensing partner before purchase.
Who gets the most from it
Retiring an ageing file server
You have a server in the cupboard that everyone maps a drive to. It needs patching, it needs backing up, and one day it needs replacing. Moving those shared drives into SharePoint removes the hardware, keeps the files reachable from anywhere, and folds the whole thing into the Microsoft 365 you already pay for.
Getting off consumer Dropbox or a mess of personal accounts
Files scattered across personal Dropbox, a shared Google account and a few USB sticks is a security and continuity risk. OneDrive gives each person proper business storage, and SharePoint gives the team a real shared home, all under your control and tied to your business accounts, not someone's personal login.
Hybrid and remote teams
When people work from home, the office and client sites in the same week, a physical file server becomes a bottleneck. SharePoint and OneDrive put the same files, with the same permissions, in front of everyone wherever they are, with no VPN and no 'I can only get to that drive from the office'.
Teams-first businesses
If your team already lives in Microsoft Teams, you are already using SharePoint whether you realise it or not. Every Team stores its files in a SharePoint site behind the scenes. Understanding that link is the difference between Teams staying tidy and it turning into a dumping ground.
What happens with and without it set up
These five moments happen in every business. They are the difference between files being an asset and files being a headache. Have a look at which column your business is in today.
| Situation | On a file server or Dropbox | On SharePoint & OneDrive |
|---|---|---|
| Two people need to edit the same document | One person opens it, the other is locked out or works on a copy. You end up with two versions and someone has to merge them by hand later. Half the changes get lost. | Both open the file at once and see each other typing. There is one document, always current. When they finish, it is done. No merging, no lost edits. |
| Someone overwrites an important file | The good version is gone. You dig through email for an old attachment, or ask around to see if anyone has a copy. Sometimes you just redo the work. | Open version history, find the version from before the mistake, restore it. Two minutes, no IT ticket. The bad edit becomes a non-event. |
| A staff member's laptop dies | If they saved to the desktop or 'My Documents', that work may be gone with the laptop. Anything not backed up is a loss. | Their files were in OneDrive, synced to the cloud. Hand them a new laptop, they sign in, and their files come straight back. Nothing lost. |
| You need to send a client a large folder | The attachment bounces for being too big. You fall back to a personal Dropbox or WeTransfer link that you cannot control or track. | Right-click the folder, create a share link, set it to expire in 14 days and require a sign-in. The client gets the files, you keep control, and you can switch the link off any time. |
| A staff member leaves | Their work files were on their laptop and in a personal account you cannot reach. You chase them for handovers and hope nothing important walks out the door. | Their OneDrive and the team's SharePoint files stay with the business. You reassign access, hand their OneDrive to a manager, and the work continues without them. |
Two people need to edit the same document
File server or Dropbox
One person opens it, the other is locked out or works on a copy. You end up with two versions and someone has to merge them by hand later. Half the changes get lost.
SharePoint & OneDrive
Both open the file at once and see each other typing. There is one document, always current. When they finish, it is done. No merging, no lost edits.
Someone overwrites an important file
File server or Dropbox
The good version is gone. You dig through email for an old attachment, or ask around to see if anyone has a copy. Sometimes you just redo the work.
SharePoint & OneDrive
Open version history, find the version from before the mistake, restore it. Two minutes, no IT ticket. The bad edit becomes a non-event.
A staff member's laptop dies
File server or Dropbox
If they saved to the desktop or 'My Documents', that work may be gone with the laptop. Anything not backed up is a loss.
SharePoint & OneDrive
Their files were in OneDrive, synced to the cloud. Hand them a new laptop, they sign in, and their files come straight back. Nothing lost.
You need to send a client a large folder
File server or Dropbox
The attachment bounces for being too big. You fall back to a personal Dropbox or WeTransfer link that you cannot control or track.
SharePoint & OneDrive
Right-click the folder, create a share link, set it to expire in 14 days and require a sign-in. The client gets the files, you keep control, and you can switch the link off any time.
A staff member leaves
File server or Dropbox
Their work files were on their laptop and in a personal account you cannot reach. You chase them for handovers and hope nothing important walks out the door.
SharePoint & OneDrive
Their OneDrive and the team's SharePoint files stay with the business. You reassign access, hand their OneDrive to a manager, and the work continues without them.
What it looks like day-to-day
Set up well, this should feel almost invisible. People save files the way they always did, in folders that look normal, and the cloud handles the rest quietly in the background.
| Who | Their experience |
|---|---|
| A staff member on a managed laptop | They see their team's SharePoint libraries and their own OneDrive right in File Explorer, like normal folders. They save their work there without thinking about it, and it is synced to the cloud and reachable from any of their devices. |
| A staff member working from home | They open the same shared files they would at the office, with no VPN. If the internet drops, Files On-Demand means the files they have opened recently are still available offline, and they sync back up when the connection returns. |
| A manager sharing with a client | They send a link to a folder instead of an attachment, set it to expire, and can see and revoke access later. Sensitive files stop floating around as email attachments nobody can recall. |
| StartCloud (managed setup) | We design the site and library structure, set the permissions, move the old files across, install and configure the sync client on every device, and train the team so the new setup actually gets used rather than worked around. |
From a messy file server to a clean cloud home
The tools are included in your licence. Getting real value out of them takes planning. Tip an old server straight in and you keep the mess. Here is how we do a file server migration so you actually start clean.
Step 1. Audit what you have now
We look at your current file server or Dropbox: how much data, how it is structured, who needs access to what, and where the long paths and deep folders are hiding. This is what stops you carrying old mess into the new setup.
Step 2. Design the structure
We map out SharePoint sites and libraries around how your team actually works: one place for shared work, personal drives for work in progress, and a permission model that is simple enough to keep tidy. Flatter folders, shorter names, sensible names people recognise.
Step 3. Set permissions properly
Access is set per site and library, not folder-by-folder as an afterthought. We keep it simple: a small number of clear groups, so that in two years you can still answer 'who can see this?' without a spreadsheet.
Step 4. Migrate the files
We move the data across with a proper migration tool that preserves version history and dates, runs in the background, and does a final catch-up sync at cutover. Staff keep working on the old server until the day we switch, so there is no big-bang outage.
Step 5. Set up sync on every device
We install and configure the OneDrive sync client on each laptop, turn on Files On-Demand, and map the right libraries so people see their shared drives where they expect them. Done right, day one feels familiar, not foreign.
Step 6. Train the team and add backup
We show the team how sharing, version history and co-authoring work, so they use the new setup instead of inventing workarounds. And we add a third-party backup, because version history is not a backup.
Common pitfalls
-
Lifting the old file server across folder-for-folder. If you copy twenty years of tangled folders straight into SharePoint, you get the same mess in a new place, plus new problems with long paths. Plan the structure first. It is a rare chance to start clean.
-
Syncing enormous libraries onto every laptop. If everyone syncs a 500GB shared library in full, laptops fill up and sync grinds. Files On-Demand plus syncing only what a person needs keeps things fast.
-
Sharing everything with everyone to 'keep it simple'. Wide-open access feels easy on day one and becomes a real risk later. A small number of clear permission groups is simpler to live with than one big free-for-all.
-
Treating the recycle bin as your backup. It catches quick mistakes, not a ransomware run or a deletion nobody spots for months. A separate backup of your Microsoft 365 data is not optional.
We cover this in our disaster recovery service.
-
Rolling it out with no training. The tools only pay off if people use them. Skip the training and staff quietly go back to emailing attachments and saving to the desktop, and you are back where you started.
Our adoption and training makes the difference between paying for these tools and actually using them.
Should your files live here?
For most Perth businesses, yes. If you are still running a file server, juggling Dropbox, or have files scattered across desktops and personal accounts, moving to SharePoint and OneDrive is one of the clearest wins available to you. And you almost certainly already pay for it.
The honest caveat is that the tools reward planning and punish laziness. Set up thoughtfully, with a sensible structure, clean permissions and a bit of training, this quietly becomes the backbone of how your team works. Rushed, it becomes a sync-conflict, permission-tangle headache that people work around. The difference is almost entirely in the setup.
And remember the one thing that trips people up: version history and the recycle bin are safety nets for small mistakes, not a backup. Pair this with a proper backup and you have somewhere your business files can genuinely live for the long haul.
Where StartCloud fits in
You own the licence. Here is where we help you get real value from it.
Move off your old file server
Cloud migration service
Set up Microsoft 365 the right way
Microsoft 365 for business
Train the team so they actually use it
Adoption and training
Add a proper backup behind it
Backup and disaster recovery
Keep it secure and governed
Managed security service
Talk to the Perth team
Get in touch
Still on a file server?
If your files still live on a box in the cupboard or scattered across Dropbox, StartCloud plans and runs the move to SharePoint and OneDrive, cleanly, with your version history kept and your team trained.
Plan your file server moveNo obligation. Straight answers. Perth-based team.
References
- Microsoft SharePoint product page (Australia)
https://www.microsoft.com/en-au/microsoft-365/sharepoint/collaboration - OneDrive for Business plans and pricing
https://www.microsoft.com/en-au/microsoft-365/onedrive/onedrive-for-business - Microsoft 365 business plans and pricing (Australia)
https://www.microsoft.com/en-au/microsoft-365/business/microsoft-365-plans-and-pricing - SharePoint Online service description and limits
https://learn.microsoft.com/en-us/office365/servicedescriptions/sharepoint-online-service-description/sharepoint-online-service-description - SharePoint and OneDrive storage limits
https://learn.microsoft.com/en-us/sharepoint/manage-site-collection-storage-limits - Co-authoring and version history in Microsoft 365
https://support.microsoft.com/en-us/office/document-collaboration-and-co-authoring-ee1509b4-1f6e-401e-b04a-782d26f564a4 - Standalone SharePoint and OneDrive plans being retired
https://learn.microsoft.com/en-us/office365/servicedescriptions/sharepoint-online-service-description/sharepoint-online-service-description
Document prepared July 2026 by StartCloud (Start Technologies Pty Ltd). Pricing and feature information is indicative only and current as of the date of preparation. Microsoft licensing and pricing change frequently, especially after the July 2026 Australian price update, so confirm with your licensing partner before any purchase decision.