Microsoft plans to monetize OneDrive unlicensed accounts with monthly fees!
Posted by KavyaJune@reddit | sysadmin | View on Reddit | 82 comments
Starting in late January 2025, OneDrive is updating its storage policies for business and enterprise unlicensed accounts (Currently, Edu tenants excluded). After this policy change, any OneDrive accounts that have been unlicensed for more than 90 days will be automatically archived and become inaccessible to end users.
Accessing Archived Accounts:
Once the accounts are archived, you can access their files by enabling Unlicensed Account Billing in the Microsoft 365 admin center. Note that this billing applies to all unlicensed OneDrive accounts in your tenant:
- Storage Fee: $0.05/GB per month to store unlicensed accounts in the Microsoft 365 Archive.
- Reactivation Fee: $0.60/GB to reactivate accounts stored in the Microsoft 365 Archive.
Admin Actions:
- View Unlicensed Accounts: Navigate to SharePoint admin center > Reports > OneDrive accounts to view a list of unlicensed accounts in your tenant.
- Set Up Archive Billing: Establish archive billing for unlicensed accounts to access and edit archived files.
- Delete Unlicensed Accounts: If an unlicensed account does not have a retention policy applied, consider deleting it.
- Renew Unlicensed Accounts: Renew any unlicensed accounts you wish to maintain access to.
Source: MC836942
cubic_sq@reddit
Most 3rd party backup (which you should have) will take care of this for free (many don’t charge for deleted or unlicensed accounts).
LeandroMendesC@reddit
Opa!, pode me indicar alguns?
ITGuyThrow07@reddit
I'm confused about how the accounts with retention policies will work. Will we still have to pay for those if the policy goes past 90 days? Or are they sitting in the "archived" status?
Professional-Pain-11@reddit
That’s precisely how it will function: If the account or OD isn’t deleted within 90 days (because of a retention policy, for example), it will be moved to the M365 Archive, and you will be charged for it.
ITGuyThrow07@reddit
Cool, paying twice for one service, gotta love it.
Professional-Pain-11@reddit
Well no, cause this account needs to be unlicensed. So you are not paying for it and Microsoft doesn’t to host it for free anymore
ITGuyThrow07@reddit
Yeah but they should be honoring the retention policy, regardless of whether the account is licensed now or not. That's kind of the whole point of the retention policy, which we paid for while the account was licensed.
Professional-Pain-11@reddit
They will honor it: by moving the data to Archive and making you pay for it
i know it sucks, we too have a lot of data to decide what we’re going to do with, and we are not happy about it… it was a nice loophole 😅
Aalkfk@reddit
I found the following article:
I understand that an active retention policy ensures that the account is not deleted if no payment information is active.
This means that with active retention, you can avoid paying for the time being and the archives, e.g. due to legal issues, are still free of charge as long as no payment information is stored.
Professional-Pain-11@reddit
I would need to check, but aren’t they using your tenant payment method, which is mandatory to use their services?
Aalkfk@reddit
This article at least mentions that you need to set up an Azure subscription.
https://learn.microsoft.com/en-us/sharepoint/unlicensed-onedrive-accounts
No-Friendship-396@reddit
I'm curious too. Hope more information goes out about this.
CaptainFluffyTail@reddit
Okay. So if somebody leaves the organization the contents of their OneDrive need to be archived to a file share or something else other than staying in OneDrive. Shouldn't organizations have been enforcing that anyway? have people been treating OneDrive like a mailbox in Outlook and just reassigning to someone and forgetting about it? After typing that out I am actually not that surprised. Should probably audit some high-turnover teams in my own org.
TulkasDeTX@reddit
If I remember correctly, once you remove the license an email is sent to the manager of the user to get the contents (access is provided automatically) and after a predefined amount of time, its deleted. You can adjust that amount of time, I think default is 90 days. I don't understand this announcement.
BrentNewland@reddit
It's not once you remove the license, it's once the account is deleted.
Ferretau@reddit
If your pure cloud it's when the account is deleted, but if you're hybrid then when the license is removed.
BrentNewland@reddit
We are hybrid, and our employees supervisors didn't get the email until 90 days after we removed the license, when we deleted the account on-prem.
Ferretau@reddit
Curious we don't see that behaviour at all. We assign by group the licenses. When we remove the account from the group when it syncs to the cloud the notification is sent to the manager within an hour or two depending how quickly M$'s internal systems process it.
Aalkfk@reddit
Are all your users synchronized or does the synchronization depend on this particular group?
This would explain the behavior. No sync, no cloud account.
Ferretau@reddit
Not all users are synched - we only sync what's required in the cloud - the rest remain off the cloud.
Broad-Celebration-@reddit
Not true
TulkasDeTX@reddit
From what I read on the announcement, but is not explicitly said, is that OneDrive contents will not be auto-deleted anymore, but auto-archived.
This looks like a money-grab. I hope there is a setting somewhere to set the standard to auto-delete instead of auto-archive.
Trick_Tumbleweed9520@reddit
They will still be deleted if you delete the account. However, if you just remove the license, but leave the account then the contents will be archived.
Aalkfk@reddit
This is particularly expensive for users who are absent for a longer period of time, e.g. due to illness, parental leave, ....
This means that at least additional F licenses or similar are required to retain the content.
KaitRaven@reddit
As someone else mentioned, the issue is likely due to unlicensed accounts that have a long data retention policy assigned. People were effectively getting that data stored for free.
Sengfeng@reddit
There will be, but they'll move it to different powershell commands each month after implentation.
Broad-Celebration-@reddit
No it isn't. One drive data lives until the account is deleted. The lack of a license does not change this.
Medium-Comfortable@reddit
Create an Azure Storage Account, create a cold store share there, create a folder per departed user, move the data there. Like so you don’t need on premises resources, if you ain’t got no file server no more.
AnnoyedVelociraptor@reddit
That only retains vCurrent. Wouldn't you want to archive [v1..=vCurrent]?
Medium-Comfortable@reddit
If you want that, you’d need a SharePoint dump. There are several ways and possibilities, I guess.
RCTID1975@reddit
Or create an actual policy that doesn't end in orphaned data.
We keep the default settings for onedrive. When a user is delicensed (ie, they left the company), the manager is notified, and the timer starts. They have 90 days to review the data and move it to a correct location, or it's gone.
Prior to onedrive, we found that people weren't reviewing files, and they would sit around for years wasting space and creating clutter.
Dabnician@reddit
I'll just tuck them in my
onedrive:\old employee files\
folder to forget about them until its someone elses problem.RCTID1975@reddit
OK, but they're far more likely to be seen and dealt with there than some "old employees" folder full over 100s of other folders that no one even remembers exists.
It also shifts from IT's problem to the employee's problem where it belongs.
Dabnician@reddit
Nah they wont get dealt with there either, what ends up happening is that manager just tucks that direct reports files in the folder and forgets about them.
They can't delete anything out of that folder because they "might" need something one day, but also can't be bothered to spend 5 minutes actually looking at what is in there.
But at the same time the manager is disconnected from the work so they actually don't even have a clue what those files are, what they do or why the employee created those.
Logically what should happen is you give your team those files, tell them "bob left look though this crap and see if any of it is useful"
but oh noes we can do that because what if it has HIPAA or PII data.... so off to the manager it goes.
not my problem since there isnt a file server limit to worry about anymore.
RCTID1975@reddit
None of that is IT's problem.
IT was the defacto owner of all data in the past. With things like Teams, onedrive, and sharepoint, it gives us the ability to push that data to the people who actually own it, and allow them to control it.
This is important, and should be done. I really don't care if those people keep their folders cluttered and useless. It's not my problem, and it shouldn't be anyone's problem in IT.
They can use it, delete it, ignore it, let it age out, whatever they want. I could not care less.
But if it's stored in a centralized place, then it IS my problem, and it shouldn't be.
Dabnician@reddit
this only affects people that were abusing a loophole that allowed you to access content in unlicensed accounts.
bbqwatermelon@reddit
Funny how quick the kibosh came after a thread here a few months ago where I was 'corrected' about having a plan for deprovisioning OneDrive requiring more steps than converting a mailbox. Some folks pointed out this loophole but you cannot depend on loopholes forever...
_keyboardDredger@reddit
This has always been my thoughts as well, so many users advising to convert to shared mailbox, remove license and done. This completely overlooks the rest of the M365 ecosystem & apps that licensing provides access too.
I am still of the opinion that retention policies, possibly in combination with litigation hold, and deleting the users while fully licensed is the legitimate method of closing our user accounts.
Obviously there are business specific processes to take into account for out-of-office or email forwarding
jmbpiano@reddit
FTFY.
OneDrive is a great tool, but if you don't already have the data stored in multiple locations, you're playing with fire.
RCTID1975@reddit
What? Why would you treat this differently than any other file storage?
Just back it up like everything else. Why on earth would you store it in multiple locations?
jmbpiano@reddit
That's my entire point.
If all your backups are stored in the same storage location/service, you effectively have no backup at all!
RCTID1975@reddit
Ah, I see. "stored in multiple locations" doesn't read as "backups". Thanks for clarifying.
CaptainFluffyTail@reddit
To be fair OneDrive is supposed to be the working copies of files like the old home drive concept. Once a task or project is finished it gets published to the proper location in the infrastructure.
Counterpoint is my dumbass IT manager who shares everything out of his OneDrive and not the SharePoint site or Teams related to different projects. If his OneDrive was lost tomorrow he would be the only one crying.
jmbpiano@reddit
I get what you're saying, but even home drives should be getting continuous backups. Even if a project only takes a couple of days before it gets "published", I sure as heck don't want to risk having to redo a day's worth of work because something went wrong.
CaptainFluffyTail@reddit
I wasn't saying there shouldn't be a backup. Email, OneDrive, and SharePoint should all have a backup strategy beyond "use the recycle bin and hope you notice before 90 days". To me that is different that the licensing and accessibility to OneDrive.
When you said "stored" I was thinking user-accessible rather than backups.
notHooptieJ@reddit
Pretty much, we have a client that wants "forensic" access to onedrive after an employee is parted
.. only they dont know what that actually means and just want that one drive shared with a half dozen managers that never bother to look in it.
We audit once a quarter and never fail to have to recover 3-5 licenses.
Professional-Pain-11@reddit
Has anyone found a way to determine how often the files of an unlicensed user are being accessed (since they became unlicensed or left)? It’s quite challenging to estimate the cost of archiving without knowing how frequently active users might restore data from inactive users. The new report shows how many users and how many GB/TB, but not clue on the activity
Va1crist@reddit
this is what happens when you allow everything to go to the cloud, get the point where they have to start nickle and diming, cutting features, adding more and more things to charge you for.
Professional-Pain-11@reddit
You shouldn't count on Microsoft to host your data for 10 years and for free
BigBursar@reddit
Unless I'm just looking in the wrong place, I can't see a "Reports" section in the SharePoint Admin Center.
I can see a "OneDrive Usage" graph and a "OneDrive Activity" graph, but neither of those show me unlicensed users.
Is this something that I just need to wait for and eventually the option will appear? Or can someone post a direct link to the appropriate place in the SP Admin Center?
KavyaJune@reddit (OP)
Currently, it's available for few tenants. It will start to appear for all from Aug 16, as per message center.
viddy_well@reddit
Based on the wording, do we know if this applies to mailboxes converted to shared mailboxes as well?
Alternative_Yard_691@reddit
Can anyone point me to a good article (non ms a plus as I don’t like there documentation style) that shows how to backup a departed users one drive, and teams? I figured out how Tomlinson export their mailbox.
The email to the manager is cool. Where is that defined ?
bazjoe@reddit
well, microsoft knows that on average, a significant number of one drive accounts are not managed by professional IT. Resulting into the storage being disorganized... into 'packrat' mode.
Smokerfriendly@reddit
"account might remain active without a license due to a retention policy in Purview keeping it from being deleted"
Will this apply to onedrive sites in e-discovery cases? If so, my organization is gonna have a meltdown due to the amount of litigation we have.
MyToasterRunsFaster@reddit
Though it sounds shitty, for any company that actually has any sort of proper off boarding and data management policies, this is going to have zero impact.
All leaver data gets archived into cold storage anyway or ends up in the manager's SharePoint directory.
Also, OneDrive files are arguably for personal use only, if something needs to be shared it should be in SharePoint where ACL's are preset on group basis. Simple as. Where I work there is not such thing as sharing from your personal one drive, so when someone leaves, there is no mystery as to whom the files could be shared with, and if there will be a loss of access if it's archived and user accounts are deleted.
unccvince@reddit
Yeah, cloud is great and free, now cloud is great and not free, next is cloud is not great and not free. News at 11.
chillzatl@reddit
I assume the only real change here is that despite having a retention policy, you no longer get unlimited data retention if you dump the license on the account with the data that was being retained by the policy?
Surprised it took them this long...
ITGuyThrow07@reddit
You can currently extend this to 10 years. So I'm assuming that option is going away.
Arudinne@reddit
I doubt they'd get rid of it. Makes more sense for them to start billing you for storing that data.
Xesyliad@reddit
Synology with Active Backup 365 is a great way to bypass this nonsense, while also having an on prem backup of critical cloud data in the event of an outage (internet or otherwise).
Dariaskehl@reddit
Microsoft: why don’t people want to use our services?
_moistee@reddit
This just in, paid subscription services are just that and if you don’t pay the service stops working. More at 11. /s
Sengfeng@reddit
It's more the fact that they're changing the way their unlicensed user process works that defaults to a way that costs customers more. Not exactly a friendly thing to do.
_moistee@reddit
Seems reasonable, I wasn’t aware Microsoft was running a charity. Did I miss something?
Do any other recurring subscriptions in your life work differently?
Sengfeng@reddit
Expecting a charity is not the same as expecting shit not to change and bill me without notice.
Sengfeng@reddit
Wow, I sure found the Microsoft boot lickers!
RCTID1975@reddit
This goes into affect sometime in early 2025. How much notice do you need?
Nicko265@reddit
Learn to offboard users properly and use the existing tools Microsoft already provides to not have orphaned OneDrives sitting around.
Won7ders@reddit
M¥
thortgot@reddit
Oh no, having to pay for storage!
Spirited-Check1139@reddit
Surprise Pikachu Face
Pancake_Nom@reddit
So if I'm reading this correctly - you're saying that if a user does not have a paid license to use a paid service, then they won't be able to use said paid service?
TulkasDeTX@reddit
From what I read on the announcement, but is not explicitly said, is that OneDrive contents will not be auto-deleted anymore, but auto-archived.
Kind of forcing you to a different paid service instead of simply deleting the content.
RCTID1975@reddit
Seems to me that you only have to pay if you need access to it. If you don't need/want access, it just gets archived and you move on with your day
jmbpiano@reddit
I think you're probably right.
If so, it sucks to be us now. We have seasonal workers that we prefer to keep unlicensed when they're not here and reassign when they return, retaining all their security access.
I would be more than happy to have the data itself get wiped after a short period of being unlicensed, but it sounds like that's only an option if you're paying for E5 level licensing so you can get access to retention policies.
Now I guess we're going to have to delete the accounts entirely and re-onboard them every time.
Trick_Tumbleweed9520@reddit
They will still be deleted if you delete the account. However, if you just remove the license, but leave the account then the contents will be archived.
420GB@reddit
It's not forcing anything, it's providing an out for mismanaged IT environments that don't offboard employees correctly. Previously their OneDrive content would be lost. Now there's the option to recover it through Microsoft.
Smart_Dumb@reddit
I thought then when you removed the 365 license from the account, it deleted the One Drive data. This is not the case? So now we need to go through all these unlicensed accounts and make sure they have no One Drive data?
ITGuyThrow07@reddit
It's retained by default for 90 days, but this can be extended to 10 years through a setting in the SharePoint Admin Center.
Smart_Dumb@reddit
OK. Close enough to what I thought. So, anything over the 90 day period will be billed. We didn't change the default retention, so we should be good.
KavyaJune@reddit (OP)
If you can't access Message Center, you can refer here: https://blog.admindroid.com/microsoft-auto-archives-unlicensed-onedrive-accounts/