MC836942 – Microsoft OneDrive: Update for unlicensed accounts

Product:

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

Platform:

Education, World tenant

Status:

Change type:

New feature, User impact, Admin 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:
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:
2025-01-15

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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MS Urgency

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Pictures

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Direct effects for Operations**

- Impact on IT Operations
- Increased administrative workload for IT administrators to manage unlicensed accounts.
- Roles impacted: IT Administrators, IT Support Staff
- Potential for data loss if unlicensed accounts are not managed properly before the deadline.
- Roles impacted: IT Administrators, Data Compliance Officers
- Need for additional training or resources to understand new billing and archiving processes.
- Roles impacted: IT Administrators, Training Coordinators

- Impact on IT Services
- Changes in storage policies may lead to confusion among users regarding access to their files.
- Roles impacted: End Users, IT Support Staff
- Increased demand for support services as users encounter issues with inaccessible accounts.
- Roles impacted: IT Support Staff, Help Desk Personnel

- Impact on IT Users
- Users may lose access to important files if their accounts are archived without prior notification.
- Roles impacted: End Users, Department Managers
- Users may experience disruptions in workflow due to the need for account renewals or reactivations.
- Roles impacted: End Users, Project Managers

- Impact on Compliance and Security
- Potential compliance risks if unlicensed accounts are not properly archived or deleted.
- Roles impacted: Compliance Officers, Data Protection Officers
- Increased scrutiny on data retention policies and practices as unlicensed accounts consume pooled storage.
- Roles impacted: Compliance Officers, IT Administrators

- Dependencies and Interdependencies
- Changes may affect integration with other Microsoft 365 services, such as SharePoint and Purview Communication Compliance.
- Roles impacted: IT Administrators, Integration Specialists
- The need for coordination with Azure services for billing and account management may complicate operations.
- Roles impacted: IT Administrators, Cloud Services Managers

References:
- Microsoft Learn: [Manage unlicensed OneDrive user accounts](https://learn.microsoft.com/microsoft-365/admin/add-users/delete-a-user?view=o365-worldwide)
- Microsoft Learn: [OneDrive retention and deletion](https://learn.microsoft.com/sharepoint/retention-and-deletion)
- Microsoft Learn: [Delete a user from your organization](https://learn.microsoft.com/SharePoint/unlicensed-onedrive-accounts)

Opportunities**

- Implement a proactive account management strategy
- Regularly review and manage unlicensed accounts to prevent automatic archiving.
- Utilize the SharePoint admin center to generate reports on unlicensed accounts and take necessary actions.
- Roles benefiting: IT Administrators, Compliance Officers.

- Establish a clear communication plan for users
- Notify users about the upcoming changes to unlicensed accounts and the implications for their data.
- Provide guidance on how to retain access to necessary files and the process for renewing licenses.
- Roles benefiting: IT Support Teams, User Experience Managers.

- Optimize storage management
- Analyze the storage usage of unlicensed accounts and consider deleting those that are no longer needed.
- Set up retention policies to manage data effectively and avoid unnecessary costs associated with archiving.
- Roles benefiting: Data Managers, IT Operations Teams.

- Evaluate the need for Azure subscription
- Assess whether enabling unlicensed account billing is necessary based on the number of unlicensed accounts and their usage.
- Consider the cost implications of reactivating accounts versus maintaining them in an archived state.
- Roles benefiting: Financial Analysts, IT Budget Managers.

- Leverage training and resources for IT staff
- Provide training on managing unlicensed accounts and understanding the new policies to ensure compliance and efficiency.
- Utilize Microsoft Learn resources to stay updated on best practices for managing OneDrive accounts.
- Roles benefiting: IT Training Coordinators, IT Operations Managers.

References:
- [Manage unlicensed OneDrive user accounts - SharePoint in Microsoft 365](https://learn.microsoft.com/microsoft-365/admin/add-users/delete-a-user?view=o365-worldwide)
- [OneDrive retention and deletion - SharePoint in Microsoft 365](https://learn.microsoft.com/sharepoint/retention-and-deletion)
- [Delete a user from your organization - Microsoft 365 admin](https://learn.microsoft.com/SharePoint/unlicensed-onedrive-accounts)

Potentional Risks**

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Data Protection**

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Hypothetical Work Council Statement**

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DPIA Draft**

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