MC836942 – (Updated) Microsoft OneDrive: Update for unlicensed accounts

Product:

Entra, Microsoft 365 admin center, OneDrive, Purview Communication Compliance, SharePoint

Platform:

Education, World tenant

Status:

Change type:

Admin impact, New feature, Updated message, User impact

Links:

Details:

Summary:
OneDrive is updating storage policies for business and enterprise unlicensed accounts, effective late January to March 2025. Unlicensed accounts over 90 days will be archived and inaccessible to users but visible to admins. Actions include archiving, deletion, or renewal. Education tenants are currently exempt.

Details:
Updated: January 27, 2025: Today, we are starting to implement the update for unlicensed OneDrive accounts.
For accounts unlicensed before February 17, 2025:
April 25, 2025: By this date, all unlicensed accounts will transition to read-only mode. Admins are advised to check after this date to avoid an incomplete status snapshot.
May 16, 2025: By this date, all unlicensed accounts will be archived. Admins are advised to check after this date to avoid an incomplete status snapshot.
For accounts unlicensed after February 17, 2025, the account will be put into read-only mode on the 60th unlicensed day and will be archived or moved to the recycle bin on the 93rd unlicensed day.
Example:
Unlicensed Date: March 1, 2025
Day 60: April 30, 2025. The account is placed in read-only mode.
Day 93: June 2, 2025. The account is either archived (if a retention policy is in place) or moved to the recycle bin (if no retention policy applies).
OneDrive is making changes to storage policies of unlicensed Microsoft OneDrive accounts for business and enterprise customers. These changes do not apply to customers in Education tenants.*
[When will this happen:]
General Availability (Worldwide): We will begin rolling out late January 2025 and expect to complete by late March 2025.

Change Category:
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Scope:
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Release Phase:

Created:
2024-07-27

updated:
2025-01-28

Task Type

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Docu to Check

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MS How does it affect me

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MS Preperations

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summary for non-techies**

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Direct effects for Operations**

Inaccessibility of Unlicensed Accounts
Unlicensed OneDrive accounts will become inaccessible to end users after 90 days, leading to potential data loss and disruption of workflows.
   - roles: End Users, IT Administrators
   - references: https://learn.microsoft.com/sharepoint/unlicensed-onedrive-accounts

Increased Administrative Burden
Admins will need to actively manage unlicensed accounts to prevent data loss, which may lead to increased workload and potential oversight.
   - roles: IT Administrators, Compliance Officers
   - references: https://learn.microsoft.com/microsoft-365/admin/add-users/delete-a-user?view=o365-worldwide

Potential Data Loss
Failure to renew or manage unlicensed accounts may result in permanent data loss if accounts are deleted after archiving.
   - roles: End Users, Data Managers
   - references: https://learn.microsoft.com/sharepoint/retention-and-deletion

User Experience Degradation
Users may experience frustration and confusion due to sudden inaccessibility of their files, impacting productivity and morale.
   - roles: End Users, Team Leaders
   - references: https://learn.microsoft.com/sharepoint/unlicensed-onedrive-accounts

Compliance Risks
Unmanaged unlicensed accounts may pose security and compliance risks, especially if they contain sensitive information.
   - roles: Compliance Officers, IT Security Managers
   - references: https://learn.microsoft.com/sharepoint/unlicensed-onedrive-accounts

Configutation Options**

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Opportunities**

Implementing Retention Policies for Unlicensed Accounts
By establishing clear retention policies for unlicensed accounts, organizations can manage data more effectively, ensuring compliance and minimizing risks associated with data loss or unauthorized access. This will help in archiving relevant data while allowing for the deletion of unnecessary accounts, streamlining IT operations.
   - next-steps: Review current retention policies and adjust them to ensure they are aligned with the upcoming changes. Train IT staff on how to implement and manage these policies effectively.
   - roles: IT Administrators, Compliance Officers, Data Governance Teams
   - references: https://learn.microsoft.com/sharepoint/retention-and-deletion" target="_blank" rel="nofollow noopener noreferrer">https://learn.microsoft.com/sharepoint/retention-and-deletion, https://learn.microsoft.com/sharepoint/unlicensed-onedrive-accounts " target="_blank" rel="nofollow noopener noreferrer">https://learn.microsoft.com/sharepoint/unlicensed-onedrive-accounts

User Communication and Training
To mitigate confusion and enhance user experience, it is crucial to communicate these changes to all users. Providing training sessions and documentation on how to manage their OneDrive accounts can lead to better user engagement and compliance with the new policies.
   - next-steps: Develop a communication plan that includes emails, training sessions, and FAQs. Create user-friendly documentation that outlines the changes and what actions users need to take.
   - roles: HR Managers, IT Support Staff, Communications Teams
   - references: https://learn.microsoft.com/microsoft-365/admin/add-users/delete-a-user?view=o365-worldwide

Monitoring and Reporting on Unlicensed Accounts
Utilizing the reporting tools available in the SharePoint admin center can help organizations keep track of unlicensed accounts and their status. This proactive approach can prevent data loss and ensure that accounts are managed according to the new policies.
   - next-steps: Set up regular audits of unlicensed accounts using the reporting tools. Schedule monthly reviews to ensure compliance and take necessary actions on unlicensed accounts.
   - roles: IT Administrators, Data Analysts, Compliance Officers
   - references: https://learn.microsoft.com/sharepoint/unlicensed-onedrive-accounts, https://learn.microsoft.com/sharepoint/retention-and-deletion" target="_blank" rel="nofollow noopener noreferrer">https://learn.microsoft.com/sharepoint/retention-and-deletion

Potentional Risks**

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Data Protection**

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IT Security**

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Hypothetical Work Council Statement**

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DPIA Draft**

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explanation for non-techies**

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