SharePoint vs OneDrive vs Teams – How Microsoft 365 works for small businesses

Are SharePoint and OneDrive the same thing, or do small businesses need both?

Short Answer: No — they serve different purposes, and SMBs benefit from using both.

In simple terms:

• OneDrive = Personal storage (your own files and drafts)
• SharePoint = Team and company storage (shared documents, team collaboration)

Small business example:
A 20-user construction company stores personal estimates in OneDrive, but project drawings, contracts, and client files go into SharePoint so everyone can access them securely.

SharePoint vs OneDrive for Business

 Is Microsoft SharePoint the same as Microsoft Teams?

Short Answer: No — but they are deeply connected.

• Teams is for communication (chat, meetings, calls)
• SharePoint is for storing and managing documents that Teams uses behind the scenes

Every time you create a new Team, Microsoft automatically creates a SharePoint site to store that Team’s files.

Small business example:
A marketing agency chats and collaborates in Teams, but all campaign files, images, and proposals are stored inside the SharePoint site created for that Team.

 Are SharePoint and OneDrive linked inside Microsoft 365?

Absolutely. Microsoft designed them to work together.

• You save personal work in OneDrive.
• You save shared documents in SharePoint.
• Both appear together in the OneDrive web interface under ‘Shared Libraries’.

Example:
A small accounting firm sees both personal folders and department folders inside OneDrive, even though department folders physically live in SharePoint.

 Are SharePoint documents stored in OneDrive?

Technically no, but Microsoft surfaces SharePoint files inside OneDrive for convenience.

• Actual storage = SharePoint
• Display for quick access = OneDrive web (Shared Libraries section)

This prevents confusion for employees who don’t know the difference.

SharePoint Document Management System (DMS)

 Does Microsoft back up SharePoint files?

Yes — Microsoft 365 automatically protects your SharePoint data.

Protection includes:

• Version history for each file
• Recycle Bin + Site Collection Recycle Bin
• Geo-redundant storage
• Optional retention policies

Small business example:
A retail store accidentally deletes its “Inventory Master.xlsx.” They restore it from version history in 10 seconds—no IT help needed.

 Are SharePoint files stored locally on my computer?

By default, SharePoint files live in the cloud.
However, you can sync libraries using OneDrive Sync, allowing:

• Local offline access
• Auto-sync when internet is back
• “Files on Demand” to save storage space

Example:
A field-service technician syncs his SharePoint library to his laptop to access manuals during site visits without internet.

   Microsoft 365 SharePoint Migration/Modernization

Can anyone on the internet see my SharePoint site?

No — SharePoint sites are private by default.
Only people you specifically grant access can see your files or pages.

External sharing must be manually enabled and controlled by admin settings.

Example:
A small legal firm ensures client files are accessible only to assigned attorneys.

Are SharePoint documents securely backed up and restorable?

Yes. SharePoint protects documents through:

• Version history (restore older versions)
• Recycle Bin (recover deleted files)
• Retention policies via Microsoft Purview
• Microsoft’s built-in backup and disaster recovery

For many SMBs, this eliminates the need for third-party backup tools.

Does Microsoft back up entire SharePoint sites?

Yes. SharePoint Online is protected at the site level with Microsoft’s enterprise-grade backups.

• Deleted sites can be recovered within 93 days
• Microsoft maintains multiple redundant backups in different data centers

Example:
A small engineering consultancy accidentally deletes a project site. The admin restores it from the site recycle bin within minutes.

Is SharePoint Online free to use for small companies?

No. SharePoint Online comes with Microsoft 365 business plans, such as:

• Microsoft 365 Business Basic
• Microsoft 365 Business Standard
• Microsoft 365 E3/E5

There is no standalone free SharePoint Online edition.

However, for many small businesses already paying for email, SharePoint is included at no additional cost.

Are SharePoint Communication Sites public for everyone?

No.
Communication Sites are private unless an admin chooses to enable external sharing.

They are ideal for:

• Company news
• Announcements
• Policies
• Training content

But still restricted to internal users unless changed.

Final Thoughts

Why SMBs in North America Choose Adapt Software 365 for SharePoint Modernization

Most small and mid-sized companies struggle with:

• File chaos
• Poor folder structures
• Confusing permission settings
• Shadow IT (Google Drive, Dropbox, USB drives)
• Limited SharePoint training

Adapt Software 365 helps SMBs set up SharePoint the right way, using Microsoft best practices for:

• Document management
• Permission governance
• Team collaboration
• SharePoint–Teams integration
• Compliance + retention
• Structure + lifecycle management

If you need SharePoint made simple, secure, and organized — Adapt can help.