OneDrive vs SharePoint vs Teams: Where Should Files Live?
| OneDrive | SharePoint | Teams | |
|---|---|---|---|
| Where files are stored | The user's OneDrive | The site's document libraries | Channels: team SharePoint site. Chats: sender's OneDrive |
| Who owns the files | One person | The site and its owners | Team owners (channels) or the sender (chats) |
| When the person leaves | Retained for a set period, then deleted | Stays with the site | Channel files stay. Chat files follow the sender's OneDrive |
| Best for | Drafts and personal work | Team, department and project content | Conversation and quick access to the team's files |
Most file sprawl in Microsoft 365 comes from one confusion: people think OneDrive, SharePoint and Teams are three places. They are two. Teams is a front door to storage that lives in OneDrive and SharePoint. Once you see that, the choice of where to put a file becomes a question of who owns the work.
Where Teams files really live
- Channel files are stored in the SharePoint site behind the team, in a folder per channel.
- Chat files are stored in the sender's OneDrive for Business and shared with the people in the chat.
Private and shared channels have their own SharePoint sites, which matters when you plan permissions and review access.
The simple rule
- Mine or in progress: OneDrive.
- Ours, or others need to find it: SharePoint, usually through a team or a communication site.
- Talking about it: Teams, with the file in a channel (SharePoint), not attached in a chat.
The test is "what happens to this file if I leave tomorrow?" If the answer is that it should keep going, it belongs in SharePoint.
What happens when someone leaves
Content created by a leaver in SharePoint is unaffected, because the site is a collaborative space. A OneDrive is different. By default it is retained for 30 days after the Entra account is deleted, a period you can change with Set-SPOTenant -OrphanedPersonalSitesRetentionPeriod. The manager gets access by default and a reminder is sent 7 days before the period ends. After that the OneDrive moves to the site collection recycle bin for 93 days, and can only be restored with PowerShell. The clock starts when the account is deleted, not when you block sign-in or remove the license. Retention policies and eDiscovery holds override deletion.
Build the habit now: before an exit, have the person move shared work to SharePoint. Chat files are the usual trap, because they feel shared but sit in one person's OneDrive.
Storage and limits
- OneDrive: 1 TB per user by default on most plans, up to 5 TB depending on plan and licensed users. The admin maximum per user is 25 TB with extra storage.
- SharePoint: tenant storage of 1 TB plus 10 GB per purchased license on most plans, with a per-site maximum of 25 TB. See the storage playbook.
- Sync: Microsoft recommends syncing no more than 300,000 files across a library or across synced libraries.
- File size: 250 GB maximum, and a 400-character path limit that trips up many migrations. Check long paths with Smart Path Length.
Sharing and governance
OneDrive sharing is controlled by the person, which is convenient and hard to audit. SharePoint sharing is controlled by site owners and tenant policy, which is easier to govern. Because Copilot works within existing access, the files people keep in the wrong place become your oversharing problem later. Our sharing links guide covers the link types.
Need help setting this up?
If you are planning a file share move or a tenant cleanup, see our SharePoint migration service, or get in touch.
Related
Frequently asked questions
Where are Microsoft Teams files stored?
Files shared in a Teams channel are stored in the SharePoint site behind the team. Files shared in a Teams chat are stored in the sender's OneDrive for Business and shared with the people in the chat.
Should I store files in OneDrive or SharePoint?
Use OneDrive for personal and in-progress files and SharePoint for anything a team or department owns and others need to find, so it does not disappear when one person leaves.
What happens to a user's OneDrive when they leave?
By default Microsoft retains it for 30 days after the account is deleted, which you can change. The manager gets access by default. After that it moves to the site collection recycle bin for 93 days. Retention policies and eDiscovery holds override deletion.
How much storage does OneDrive give each user?
Microsoft's default is 1 TB per user on most plans, up to 5 TB depending on plan and the number of licensed users. Admins can raise a user to a maximum of 25 TB with extra storage.
Does it matter where Teams chat files live?
Yes. Chat files sit in one person's OneDrive, so if that person leaves, the files go through their OneDrive retention. Move anything the team needs into a channel or a SharePoint library.
How many files can I sync?
Microsoft's limits page recommends syncing no more than 300,000 files across a library or across synced libraries.
Was this page helpful?
One click. No form, no email address.
Missing something in SharePoint Smart Permissions? Feature requests and bug reports go straight to the developer on GitHub — no account needed to read, free account to post.
Request a featureRelated tool
SharePoint Smart Permissions
Visual permissions audit + Excel export. No PowerShell. Free, MIT licensed, no sign-up.
Keep reading
SharePoint Permission Levels Explained: Owners, Members, Visitors and Limited Access
Owners, Members and Visitors are groups. Full Control, Edit and Read are the permission levels behind them. Here is how they fit together, and why Limited Access keeps appearing.
How to see every SharePoint site you have access to (and build a site directory)
SharePoint has no built-in page that lists every site a person can open. A PnP Modern Search results web part with a contentclass:STS_Site query gives you one — security-trimmed, self-updating, and free.
How to find external users in SharePoint (free report)
Guest access accumulates quietly: a shared link here, a project team there. Here's how to produce a defensible list of every external user on a site — and what they can actually reach — without PowerShell.
Comparing expensive licenses?
Skip the license and let our consultants do the work
Instead of paying for a software license you may only need once, hire our team to run your permissions audit using the free tools on this site. You get a fixed scope and hands-on help, not another subscription.
About the author
Sean Regan
SharePoint & Microsoft 365 consultant with 20+ years of hands-on experience building SPFx web parts, migration tooling and tenant-grade automation. Maintainer of the open-source SharePoint Smart Solutions suite.