Microsoft to impose new charges for old archived OneDrive accounts – your data is at risk.
It has been our practise when off boarding a user (for example when an employee leaves a business) to de-licence that user and put them in to a sort of archived state. This preserves the user’s data and enables the rapid re-activation of those accounts when needed, all while minimising your 365 licence costs. Well, it looks like the party is over, from 1st January 2025 Microsoft are going to begin deleting this old data permanently, unless you opt-in to their new billing system for unlicenced accounts.
The way that they have structured ‘billing for unlicenced accounts’ means that it could cost as much as $50 per user, per month to retain their old OneDrive data, significantly more than if we were to just buy a licence for that account.
In practical terms what this means for you is that when a user is offboarded you will need to decide on one of three options-
- Move the users OneDrive data somewhere else, to a SharePoint library for instance.
- Keep the old user account licenced to preserve data long term.
or - Allow the old data to be permanently deleted 90 days following off-boarding. – This is the default option.
For accounts which have already been off boarded you still need to pick one of the options above, if you do nothing your old unlicenced user OneDrive data will be deleted next year.
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