I often get asked this question, particularly by small businesses who are wondering which of these apps they should be using.

For tiny businesses One Drive may well be enough but for larger businesses where consistent communication between individuals within the business becomes more vital Microsoft Teams will be a better option.  The grey area in the middle could depend on the exact circumstances of the company. 

Note that this article is related to One Drive for business not a personal One Drive account. 

What is OneDrive?

One Drive is designed as a personal drive where individuals can save their files for their own use.   However, folders and documents can be shared either internally or externally if required.  For micro businesses this may well be enough functionality and is certainly simpler to set up and configure initially than Microsoft Teams.  As a company grows this can become more difficult to manage and the added functionality that Microsoft Teams supports is not available on OneDrive so all communication would be forced to take place using Outlook or another emailing package.

Image to show the IFS function in use on Excel

Microsoft Teams

Microsoft Teams is designed to be a collaborative workspace and goes way beyond file sharing.  It is aimed more at internal communication but the settings can be changed to allow for external guests to be added to a team if required. 

Teams are created and from here files can be stored and worked on by any team members, conversations between team members conducted and even other applications shared so they can be worked on together like OneNote and Planner.  Individuals in a company can be members of many teams and all the work related to that team is conducted in this one place.  If a new member is added to a team they get access to everything in that team site automatically including the conversation threads that have been built up over time.  The teams can even be subdivided into channels so communication and files are more specific to the individuals that need them. 

Microsoft Teams

What’s right for you? 

Many small businesses start with One Drive for business and as they expand get to a point where they use teams instead.  Some businesses even use teams for mainly external individuals when they are working on projects with clients giving one central place where all communication is accessible to all.  Certainly it is not a one size fits all situation but I hope that this gives you a few things to consider when making the decision between One Drive for Business and Microsoft Teams. 

Further Reading

If you’ve enjoyed reading about One Drive & Microsoft Teams, there’s some other blogs below that you might find useful:

Want to learn more about Microsoft Teams & Microsoft 365? Then email lara@laramellortraining.co.uk to discuss how I can help or have a look at the Microsoft 365 Courses I run.