Licensing SharePoint and OneDrive in Microsoft 365
- Business Basic: Includes OneDrive and limited SharePoint features.
- Business Standard/Premium: Full access to SharePoint and OneDrive.
- Enterprise E3/E5: Advanced features like compliance and security.
- Add-ons: Extra features like advanced data governance are available.
Licensing SharePoint and OneDrive in Microsoft 365
SharePoint and OneDrive are two of the most integral components of Microsoft 365, providing organizations with powerful solutions for content management, file sharing, collaboration, and secure storage.
However, understanding how to license these services effectively is essential for maximizing their value and ensuring that your organization complies with security and legal requirements.
This comprehensive guide will explore the various licensing models for SharePoint and OneDrive, the features included, cost optimization strategies, and best deployment practices.
SharePoint Licensing Models
SharePoint is available on-premises and cloud versions, each with different licensing models catering to various organizational needs.
On-Premises Licensing (SharePoint Server 2019)
SharePoint Server 2019 uses a Server/CAL (Client Access License) model for organizations that prefer to manage SharePoint on their servers.
This model requires:
- Server License: Required for each instance of SharePoint Server running on the organization’s infrastructure.
- Client Access Licenses (CALs): Required for each individual or device that accesses SharePoint.
There are two types of CALs:
- Standard CAL: Provides core functionality such as basic sites, content management, communities, and search.
- Enterprise CAL: Adds advanced features like business intelligence, enhanced search, and workflow management tools.
Cloud Licensing (SharePoint Online)
For most organizations, SharePoint Online offers a more flexible and cost-effective solution as part of the Microsoft 365 suite. SharePoint Online is licensed through per-user subscriptions, available as part of various Microsoft 365 plans or standalone options.
- SharePoint Plan 1: $5.00 per user/month. This plan offers core SharePoint Online features, including document storage and sharing, collaboration tools, and basic content management.
- SharePoint Online through Microsoft 365 Business Standard: $12.50 per user/month. This plan includes SharePoint, Office apps (Word, Excel, PowerPoint), and more advanced collaboration tools.
- Microsoft 365 Enterprise Plans (E1, E3, E5): These plans offer more advanced SharePoint capabilities, including higher storage limits, enterprise-level collaboration features, compliance tools, and integration with other Microsoft 365 services.
Each licensing option varies in features, functionality, and pricing, allowing organizations to choose a plan that best fits their needs.
OneDrive Licensing Structure
OneDrive is Microsoft’s cloud-based file storage and synchronization service. It provides individuals and organizations a secure place to store, share, and collaborate on files.
Storage Allocations in OneDrive
The amount of storage available to users depends on their license type:
- Microsoft 365 Business Basic/Standard: 1 TB of storage per user.
- Microsoft 365 E3/E5: 1 TB per user (expandable to 5 TB, with additional storage available upon request).
- OneDrive for Business Plan 1: 1 TB per user.
- OneDrive for Business Plan 2 offers unlimited storage, which is ideal for large enterprises with significant storage needs.
These limits are important considerations when planning an organization’s storage strategy, especially for businesses with large amounts of data or dynamic file-sharing requirements.
Access Rights
OneDrive licenses are typically included with most Microsoft 365 subscriptions, allowing users to access:
- File storage and sharing: Users can share files internally and externally.
- Cross-device synchronization: Files are synchronized across all devices, ensuring that users have access to the most up-to-date documents, wherever they are.
- Real-time collaboration: Teams can collaborate on documents in real-time, leveraging the integration with Office apps like Word, Excel, and PowerPoint.
- Advanced security features: OneDrive includes encryption, multi-factor authentication (MFA), and other security measures to protect data.
Microsoft 365 Plans and Features for SharePoint and OneDrive
Microsoft 365 offers various plans, each with different features for SharePoint and OneDrive.
Business Plans
For small to medium-sized businesses, Microsoft 365 Business plans include SharePoint and OneDrive as part of the package:
- Business Basic includes web versions of Office apps and 1 TB of OneDrive storage per user but does not include desktop versions of Office apps.
- Business Standard includes full desktop Office apps, SharePoint, and OneDrive, with 1 TB of OneDrive storage per user.
- Business Premium: Adds security features like device management and threat protection to SharePoint and OneDrive.
These plans are ideal for businesses looking for a complete collaboration and file management solution at an affordable price.
Enterprise Plans
Larger organizations with more complex needs may opt for one of Microsoft 365’s enterprise plans, which provide additional features such as advanced security, compliance tools, and enterprise-level collaboration.
- Enterprise E1: Provides basic collaboration features, including SharePoint and OneDrive, as well as cloud storage and file sharing.
- Enterprise E3 adds advanced security and compliance tools, such as Data Loss Prevention (DLP), eDiscovery, and retention policies, as well as enhanced SharePoint and OneDrive capabilities.
- Enterprise E5: Includes premium security features like advanced threat protection, encryption, and real-time analytics, providing the most comprehensive solution for large organizations with sensitive data and complex compliance needs.
License Management
Managing SharePoint and OneDrive licenses requires attention to detail, especially when dealing with many users.
Here’s an overview of key concepts for license management:
Administrator Roles
Different admin roles have varying capabilities for managing SharePoint and OneDrive licenses:
- Global Admin: Full access to all licenses and resources, including the ability to assign, remove, and purchase licenses.
- License Admin: Can assign and remove licenses but cannot purchase additional licenses.
- User Admin: Can manage user accounts and assign licenses but cannot modify the licensing structure.
These roles help ensure that only authorized personnel can change licenses and assignments.
Device Installation Rights
Users with qualifying Microsoft 365 subscriptions can install Microsoft 365 apps (including SharePoint and OneDrive) on multiple devices:
- Up to 5 PCs or Macs
- Up to 5 tablets
- Up to 5 smartphones
This flexibility allows users to access SharePoint and OneDrive on various devices, ensuring they remain productive no matter where they are.
External User Access
SharePoint offers external sharing capabilities, enabling organizations to collaborate with vendors, contractors, or partners outside the organization without requiring additional licenses. External user access is free for SharePoint, making it an attractive feature for organizations that need to work with external stakeholders.
Cost Optimization and Management
Cost management is critical for SharePoint and OneDrive licensing. It ensures that your organization does not overpay for unused features or storage.
Here are a few strategies for optimizing costs:
License Selection Tips
- Assess User Needs: Before assigning licenses, understand the specific needs of your users. Not all employees require the same level of access or storage.
- Consider Mixed Licensing: Larger organizations may find it beneficial to mix and match different license types depending on user requirements. For example, they could assign basic plans to users who only need minimal SharePoint and OneDrive capabilities and premium plans to those who need advanced features.
- Review Usage Patterns Regularly: Monitor usage patterns to ensure users utilize their licenses effectively. Remove unused licenses to avoid unnecessary costs.
- Optimize Storage Allocation: Regularly assess your storage usage to avoid over-provisioning. Consider expanding storage when necessary, but ensure you’re not paying for more than required.
Cost Management
- Assign Appropriate License Levels: Ensure licenses align with users’ needs. Avoid assigning premium licenses to users who only need basic functionality.
- Regularly Audit Unused Licenses: Regular audits will help you identify users who no longer need licenses and allow you to free up resources for others.
- Standalone Plans: For smaller organizations or users with basic needs, consider using standalone SharePoint or OneDrive plans. These plans may be more cost-effective than bundling them into higher-end Microsoft 365 subscriptions.
Security and Compliance Features
Ensuring that SharePoint and OneDrive are secure and compliant with organizational and legal requirements is crucial. Microsoft 365 offers several built-in security and compliance tools to protect your data:
- Document Versioning: Track changes to documents over time, enabling easy restoration of previous versions.
- Access Control: Implement strict user permissions and access controls to ensure only authorized individuals can access sensitive documents.
- Data Loss Prevention (DLP): Protect your organization from accidental data leaks by enforcing policies that detect and prevent sharing of sensitive information.
- Advanced Threat Protection (ATP) Detects and mitigates threats in real time, preventing malicious actors from compromising your files or data.
Higher-tier licenses like Microsoft 365 E3 and E5 provide additional security and compliance features, including eDiscovery, audit logging, and advanced data governance tools.
Best Practices for Implementation
Implementing SharePoint and OneDrive successfully requires thoughtful planning. Consider the following best practices:
- Start with Pilot Groups: Implement SharePoint and OneDrive with a small group of users to test configurations, policies, and user training before rolling them out organization-wide.
- Implement Governance Policies: Establish clear guidelines for content management, file sharing, and security to ensure that SharePoint and OneDrive are used efficiently and securely.
- Plan Content Structure: Organize SharePoint sites and OneDrive folders logically to facilitate easy collaboration and retrieval of documents.
- Configure Sharing Settings: Set up sharing policies to control how files are shared internally and externally, ensuring the protection of sensitive data.
- Enable Appropriate Security Controls: Use built-in security features, such as multi-factor authentication and data loss prevention, to protect data from breaches.
FAQ: Licensing SharePoint and OneDrive in Microsoft 365
What’s the difference between OneDrive and SharePoint?
OneDrive is for individual file storage, while SharePoint is for team collaboration and document management.
Do I need a Microsoft 365 subscription for OneDrive?
Yes, OneDrive requires a subscription, with the Business plans offering more storage and advanced features.
Is SharePoint included in the Microsoft 365 Business plans?
SharePoint is included in Business Standard and Premium plans, offering full collaboration tools.
What’s the storage limit for OneDrive?
OneDrive offers 1 TB per user with Business Basic and Standard plans and unlimited storage with higher-tier plans.
Can I store files in SharePoint instead of OneDrive?
Yes, SharePoint is designed for team collaboration, whereas OneDrive is for personal storage, but you can use both together.
How do I manage OneDrive storage?
Admins can set storage limits or assign more storage as needed via the Microsoft 365 admin center.
Do SharePoint and OneDrive have mobile apps?
Yes, both have apps for iOS and Android for access and editing on the go.
Can I use SharePoint for document versioning?
Yes, SharePoint offers document versioning to track and restore previous file versions.
What’s the difference between OneDrive for Business and OneDrive Personal?
OneDrive for Business is part of Microsoft 365 and offers more storage, management, and sharing features than the personal version.
Can SharePoint be used without OneDrive?
Yes, SharePoint can be used independently for team collaboration, but OneDrive complements it for personal storage.
Do I need a higher-tier Microsoft 365 plan for more storage?
For more than 1 TB, you need the Enterprise plans, which offer unlimited OneDrive storage.
What is the role of SharePoint in Microsoft Teams?
SharePoint powers file storage and collaboration within Microsoft Teams.
Can I share files from SharePoint with external users?
Yes, SharePoint allows external sharing, which admins can control for security.
Are OneDrive files encrypted?
Yes, OneDrive files are encrypted in transit and at rest, offering secure storage.
How does licensing impact security features for SharePoint and OneDrive?
Higher-tier plans, such as Enterprise E3 and E5, include advanced security, compliance, and data loss prevention features for both platforms.
