Earlier this year, Microsoft announced it was rolling out a significant change to how it handles unlicensed OneDrive user accounts. Microsoft’s new OneDrive archiving policy is something every IT admin and business leader should be aware of.

Enforcement began on January 27, 2025, but the rollout has slowed to ensure a safe roll-out with sufficient time for admins to adjust. Admins should anticipate that it takes time for all unlicensed accounts to complete the enforcement process. The initial enforcement rollout will be complete by October 29, 2025. You have time, but it’s better to get on top of this.

What’s Changing with the OneDrive Archiving Policy?

Microsoft will begin automatically archiving OneDrive accounts that have been unlicensed for more than 93 days. This means if a user leaves your organization and their license isn’t reassigned or removed within that window, their OneDrive account will be archived.

What Does Archiving Mean?

Once archived, the account becomes inaccessible to both users and administrators, and the data is moved into a long-term storage state. If you want to restore access, it can only be done through reactivation, which comes with additional costs through Microsoft 365 Archive.

Why the OneDrive Archiving Policy Matters

Before this change, unlicensed accounts simply sat idle and did not incur extra charges. Now, organizations will face storage and reactivation fees if they don’t manage these accounts proactively.

It’s important to note that this policy does not apply to educational institutions (EDU), Government Community Cloud (GCC), and Department of Defense (DoD) customers

What You Should Do Now

Stay proactive. You should immediately start monitoring unlicensed accounts in the SharePoint admin center, reassign licenses to users who still need access, delete accounts that are no longer needed (before they get archived), and review retention policies, as these can prevent deletion even after archiving.

Tools to Help with the OneDrive Archiving Policy

You can use the SharePoint admin center to generate reports on unlicensed users. Once you’ve identified unlicensed users, you can either assign or remove those licenses via the Microsoft 365 admin center or PowerShell.

Remember: Once archived, you must reactivate the account before assigning a license again.

Conclusion

This change is part of Microsoft’s broader push to streamline data management and optimize storage. While it introduces new responsibilities, it also encourages better data hygiene and license management. 93 days is what you have before Microsoft starts archiving.

If your organization relies heavily on OneDrive, now’s the time to review your processes and ensure you’re ready for the new OneDrive archiving policy.

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