One Drive Archiving Changes You Need to Know

In today's digital age, managing data efficiently is crucial for businesses of all sizes. OneDrive, a key component of Microsoft 365, offers robust solutions for data storage and management. Recently, there have been important updates regarding OneDrive archiving that every organization should be aware of. In this blog post, we'll delve into these updates and what they mean for your business.

What is OneDrive Archiving?

OneDrive archiving refers to the process of retaining and managing data from OneDrive accounts, especially when users leave the organization, or their accounts become unlicensed. This ensures that important data is not lost and can be accessed when needed, while also managing storage costs effectively.

Key Updates on OneDrive Archiving

Starting January 2025, Microsoft introduced new policies for handling unlicensed OneDrive accounts. Here are the key points:

Retention Period: Unlicensed OneDrive accounts will be retained for 93 days before being archived. This is a significant change from the previous policy where these accounts were retained indefinitely.
Reactivation Fee: If an organization needs to reactivate an archived OneDrive account, there will be a fee of $0.60 per GB for reactivating the account.
Billing for Archived Data: If a retention policy is applied, customers will be charged $0.05 per GB per month for archived data from unlicensed OneDrive accounts. This ensures that organizations can manage their storage costs effectively while retaining important data.
Retention Policy Scenarios:
- No Retention Policy: The document library moves to the recycle bin and is eventually purged.
- Retention Policy Applied with Billing: The data is archived and billed accordingly.
- Retention Policy Applied without Billing: It is unclear if the data is kept subject to the retention policy.

More specifically,

For accounts unlicensed/deleted before 2/17/2025:
1. By 4/25/2025, all unlicensed OneDrive accounts become read-only.
2. By 5/16/2025, all unlicensed OneDrive accounts are moved to the archive.
On 2/17/2025 or after, what happens depends on whether any content in the OneDrive is subject to a retention policy or legal hold.
1. On day 60, the account becomes read only.
2. On day 93, the account becomes archived (if retained/held) or moves to the recycle bin for permanent deletion.

What should you be doing between now and 4/25/25:

Revisit your retention policies for M365 and determine actual business need for how long they need the content of deleted users. Are you erring on the side of retaining longer than truly needed.
Delete unneeded OneDrive accounts that would otherwise end up archived - especially ones that may have been hanging out longer than retention policies.
Delay setting up billing until you need to access the data.

Why This Matters

Understanding these updates is crucial for organizations to manage their data effectively and avoid unexpected costs. By applying the right retention policies and understanding the billing implications, businesses can ensure that their data is secure and accessible when needed.

Conclusion

OneDrive archiving is an essential aspect of data management in today's digital landscape. By staying informed about the latest updates and implementing the right policies, organizations can manage their data more efficiently and cost-effectively. If you have any questions or need assistance with OneDrive archiving, feel free to reach out to our team.

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Microsoft

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Mike Wilson

Mike Wilson brings over twenty-five years of technology experience to Interlink Cloud Advisors. Prior to joining Interlink, he served as a Director of Technology for a mid-size insurance company and has led multiple consulting practices to substantial growth. In those roles, Mike delivered tremendous value for his customers by designing and implementing scalable, reliable and business aligned solutions. Mike’s focus at Interlink is on leveraging the power of the Microsoft cloud to streamline IT operations in a way that reduces cost and allows businesses to refocus on core operations. He plays a key role in architecting projects and ensuring high standards in service delivery across the Interlink team. Mike earned a Bachelor of Science degree in Mathematics from the University of Cincinnati and is a proud graduate of St. Xavier High School. He is active in a number of local non-profits and has served on multiple non-profit boards and in executive leadership.

One Drive Archiving Changes You Need to Know

Mike Wilson

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