On October 1, 2025, Microsoft officially renamed OneDrive for Business to simply OneDrive. This change is part of Microsoft’s ongoing effort to simplify product names and improve clarity across its services.
The renaming was published in the October 2025 Microsoft Product Terms. It applies to all Microsoft 365 and Office 365 plans that include OneDrive for Business. The change affects product documentation, licensing terms, and administrative portals.
What is OneDrive?
OneDrive is Microsoft’s cloud storage service. It allows users to store, share, and access files from any device. OneDrive is available in two versions:
- Personal OneDrive: for individual use, typically linked to a Microsoft account.
- Business OneDrive: for organizational use, integrated with Microsoft 365 and managed by IT administrators.
With the October 2025 update, both versions are now referred to as OneDrive, regardless of use case.
Key Features
The renaming does not affect the functionality of the service. Business users will continue to benefit from:
- Secure cloud storage
- File sharing and collaboration
- Integration with Microsoft Teams and SharePoint
- Data loss prevention and compliance features
- Centralized administration and user management
Licensing
While the name change itself does not immediately alter licensing terms, Microsoft has introduced stricter enforcement for OneDrive licensing:
- Unlicensed accounts (e.g. shared accounts or accounts of former employees) will be archived after 93 days.
- Archived accounts will be inaccessible unless covered by a valid license or retention policy.
- Organizations may incur additional fees:
- Reactivation fee: $0.60 per GB
- Storage fee: $0.05 per GB per month
These changes may impact data access, compliance, and cost planning.
Expert advice from SCHNEIDER IT MANAGEMENT: Organizations should review their OneDrive licensing strategy, ensure all active accounts are properly licensed, and update retention policies to avoid data loss or unexpected fees.
More Information
For official details, refer to the Microsoft Product Terms: https://www.microsoft.com/licensing/terms/product.
Manage unlicensed OneDrive user accounts: https://learn.microsoft.com/en-us/sharepoint/unlicensed-onedrive-accounts.
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