OneDrive vs SharePoint vs Teams: Which Tool Fits Your Needs?

With how popular and widespread the Microsoft 365 productivity suite is – having hit the 345 million user milestone in 2024 – understanding its tools and the ways in which they work together can significantly boost your organization’s collaboration and productivity. By now most of us are already aware of Microsoft’s main communication platform, Teams, and its built-in cloud storage platform, OneDrive. However, there is a third piece to the business communication puzzle, and it is none other than SharePoint, a powerful platform that facilitates organization-wide collaboration and knowledge sharing. Together these applications create a comprehensive interaction ecosystem that empowers teams to collaborate effectively, manage documents seamlessly, and enhance overall productivity.

While it is easy to understand Teams’ role in the communication process, OneDrive and SharePoint have some overlapping functionalities which is often a source of confusion, especially for those new to the Microsoft 365 suite. Simply put, OneDrive serves as a personal storage vault, ideal for managing your files, whereas SharePoint is more of a centralized hub for simultaneous collaboration. Recognizing their unique yet complementary roles, and where MS Teams fits into all this, will help businesses streamline communications and optimize organization-wide interaction channels.

OneDrive: Personal File Storage and Management

Of the three applications currently being discussed, OneDrive is the least oriented towards collaboration and instead primarily functions as a personal storage solution, intended for individual use. OneDrive was designed to efficiently store user files and enable users to organize and easily retrieve them from any device with a working internet connection. The application is blessed with an intuitive interface, simplifying uploading documents, creating folders, and maintaining a structured library of personal work.

Although meant for personal use, OneDrive does support limited sharing options, enabling users to collaborate on specific documents by granting colleagues access permissions. This, however, is not the ideal method for co-creation/editing as permission conflicts tend to disrupt collaboration channels and lead to confusion among team members. Utilizing platforms like Teams and SharePoint for more extensive teamwork is the recommended route, given that these applications were explicitly meant for seamless, real-time communication and teamwork. As such, OneDrive should be viewed as a complementary tool within the broader Microsoft 365 ecosystem, ideal for personal file management but limited in its collaborative capabilities.”

Teams: Group Collaboration and Communication

Microsoft Teams is the central hub for communication and collaboration, both for intra and inter-team interactions. Whether you are looking to host a virtual meeting or collaborate on documents in real-time, Teams offers a dynamic environment for fostering teamwork (pun intended!). The ability to quickly send and access files that are critical to the project you are working on while discussing it with your team is a game changer!

Teams further enhance productivity by integrating video call functionality and creating a unified platform that facilitates chat, video conferencing, and file sharing in an all-in-one interface. Advanced features like threaded conversations, file versioning, and customizable channels for specific projects facilitate more than just streamlined communication – it cultivate a sense of community and engagement in team members.

Teams itself is only a communication platform and stores chat history in OneDrive and shared files in the relevant SharePoint site for that channel. Each time a user creates a new group within Teams, an associated SharePoint site is created for your documents, simplifying document access and retrieval for the entire group.

SharePoint: Organization-Wide Collaboration and Knowledge Sharing

SharePoint is an essential component of company-wide communication and offers a structured platform for document management and knowledge sharing. The main difference between OneDrive and SharePoint is that while the former focuses on personal storage the latter enables multiple teams and even the entire organization to store, manage, and co-edit files and documents. SharePoint is a more complex and feature-rich cloud-storage option than OneDrive, designed to facilitate seamless organization-wide collaboration. OneDrive essentially serves as a personalized SharePoint document library within a dedicated SharePoint site, distinguished only by its unique branding.

Knowing this, you may be wondering why OneDrive is still relevant and used. The Microsoft cloud storage platform is the ideal individual file storage solution, providing quick access to personal files. SharePoint was designed to complement this functionality by creating an environment for teams to work on projects concurrently, share relevant knowledge, and ensure everyone has access to the latest information. Together with OneDrive and Teams, SharePoint rounds out the trifecta of effective Office 365 communication tools.

How They Work Together in Microsoft 365?

While each of the three discussed applications serves distinct purposes, they are designed to work harmoniously within the Microsoft 365 ecosystem. OneDrive acts as a personal storage solution, enabling users to manage their files effortlessly from any device. At the same time, Microsoft Teams provides a collaborative platform for real-time communication, allowing users to connect, discuss, and work together on projects.

SharePoint ties these functionalities together by providing a centralized space where teams and the organization can store, organize, and share documents. This integration ensures that files stored in OneDrive can easily be accessed within Teams and SharePoint, fostering a seamless workflow. When team members collaborate on a document stored in SharePoint, they can discuss their progress in Teams, with any necessary files easily accessible through OneDrive. In essence, Teams establishes a robust platform for effective communication, while OneDrive and SharePoint guarantee that the most current versions of shared files are readily accessible and easily retrievable for all users.

This interconnected environment not only enhances productivity but also streamlines processes, minimizing the friction often associated with switching between different tools. By leveraging the strengths of OneDrive, Teams, and SharePoint, organizations can create a cohesive digital workspace that promotes efficiency and collaboration across all levels of the organization.

Best Practices for Choosing the Right Tool

The simplest way to identify which tools to use when working with your colleagues on a shared project is by following the golden rule “OneDrive is for me, Teams is for us, and SharePoint is for everyone”. This straightforward framework helps clarify the purpose of each application. Utilize OneDrive for personal file storage and organization, ensuring your individual documents are secure and easily accessible. Turn to Teams for collaborative efforts, where real-time communication and group interactions take center stage. Finally, SharePoint can be employed for organization-wide initiatives, where collective knowledge sharing and document management become essential for fostering a cohesive work environment. By understanding these distinctions, you can enhance your productivity and streamline your collaboration efforts across Microsoft 365.

• OneDrive: Use for personal file storage or when working on drafts that are not yet ready to be shared with a team.
• Teams: Ideal for real-time collaboration and communication within a group or department. Use it to manage projects and share files as a team.
• SharePoint: Leverage SharePoint for long-term storage of team documents or company-wide information. It’s the best tool for publishing and sharing documents across an organization.

Empower Your Team with Apps4Rent’s Microsoft 365 Solutions

Apps4Rent is a proud Microsoft Solutions Partner that has helped hundreds of businesses and organizations with their Office 365 requirements. Whether you are looking for hosted SharePoint plans to enhance your document management and collaboration capabilities, or need tailored Teams solutions for seamless communication, our expertise can help you unlock the full potential of these powerful tools.

We offer comprehensive support in deploying and managing Microsoft 365 applications, ensuring that your organization can work efficiently and effectively. From migration services to ongoing support, Apps4Rent is your trusted partner in maximizing your Microsoft 365 investment. Let us help you create a more collaborative and productive work environment today! Contact us today over chat, call, or text to learn more.