OneDrive or Dropbox for business?
OneDrive and Dropbox compared on storage, collaboration, version history, price, security, administration and migration.
· 4 min read
OneDrive and Dropbox both store, share and sync files well. They differ in the details that shape how your team works, how secure your data is and what you pay.
Side by side
| OneDrive for Business | Dropbox Business | |
|---|---|---|
| Storage | 1 TB per user, expandable to 5 TB or more on E3 and E5 by admin request | 9 TB pooled on Business, unlimited on Business Plus and Enterprise |
| Sync | Deep Windows integration, with Files On-Demand in File Explorer | Smart Sync, plus LAN sync for faster local syncing |
| Co-editing | Real time in Word, Excel and PowerPoint | Dropbox Paper, Google Workspace, and Office co-editing that is less smooth |
| Version history | 30 days, plus whole-OneDrive ransomware recovery | 180 days on Business, up to 10 years on Business Plus, with Dropbox Rewind |
| Admin | Microsoft 365 and SharePoint admin centres, DLP and conditional access | Its own console, with device approval, remote wipe, audit logs and legal hold |
Pooled storage suits teams where some people store far more than others. Long version history matters most in creative, legal and engineering work.
Price
OneDrive
| Plan | Per user a month | Includes |
|---|---|---|
| OneDrive for Business Plan 1 | $5 | 1 TB and web apps |
| Microsoft 365 Business Basic | $6 | 1 TB, Teams and web apps |
| Microsoft 365 Business Standard | $12.50 | 1 TB, Teams and desktop apps |
| Microsoft 365 E3 | $36 | 1 TB, the full suite and advanced security |
Most businesses already pay for Microsoft 365, which includes OneDrive at no extra cost.
Dropbox
| Plan | Per user a month | Includes |
|---|---|---|
| Dropbox Business | $15 | 9 TB pooled and 180-day history |
| Dropbox Business Plus | $24 | Unlimited storage and compliance tools |
| Dropbox Enterprise | Quoted | Advanced admin, integrations and support |
Dropbox is a separate product, so Microsoft 365 users pay for both. Without Microsoft 365, Dropbox is fairly priced on its own.
Security and compliance
Both encrypt data in transit with TLS 1.2 or later and at rest with AES 256-bit. Dropbox also encrypts each file block with its own key.
OneDrive connects to Microsoft Defender, Purview and Entra ID. E3 and E5 add sensitivity labels, information barriers and eDiscovery. For regulated industries, this depth often decides the choice.
Both hold SOC 2, ISO 27001, HIPAA, GDPR and FedRAMP certifications. Microsoft’s list is broader.
Integrations
OneDrive sits inside Microsoft 365, with Teams, SharePoint, Outlook, Power Automate and Power BI. Third-party links come second.
Dropbox works with both Google Workspace and Microsoft 365. It links well with Adobe, Figma, Asana, Trello, Monday, Slack and Zoom.
Administration
OneDrive users live in Microsoft Entra ID, formerly Azure AD, so it adds no admin work for Microsoft shops. Audit logs, usage and compliance reports sit in the Microsoft 365 compliance centre, with advanced hunting on E5.
Dropbox has its own user console. With Entra ID you can sync users by SCIM, but that is one more integration to run. Its console offers activity logs, sharing reports and team insights, with SIEM links on Enterprise.
Which fits
Choose OneDrive if you:
- Already use Microsoft 365.
- Put security and compliance first, or face strict regulation.
- Want Teams, SharePoint and Outlook joined up.
- Want fewer vendors, fewer consoles and no duplicate storage costs.
Choose Dropbox if you:
- Use a mix of Google Workspace, Microsoft and other tools.
- Need version history beyond 30 days.
- Share with outside collaborators who do not use Microsoft.
- Have creative staff who depend on Dropbox integrations.
- Want pooled storage or a standalone product.
Use both if:
- Departments differ, such as a creative team on Dropbox and everyone else on OneDrive.
- You are moving from Dropbox to OneDrive and need a transition period.
- Outside partners keep Dropbox useful while you work in Microsoft 365.
Moving between them
- Size the data. Large moves can take weeks on limited bandwidth.
- Rebuild sharing. Links, folder permissions and external shares do not carry over.
- Train users. Filing, sharing and co-editing differ enough to cost time.
- Move in phases. Go department by department, starting with a small pilot.
- Warn outsiders. Clients, partners and vendors using shared folders need notice and an alternative.
A cloud migration partner can plan the move so nothing is lost.
Questions people ask
Can we use both?
Yes, but it adds work. Decide which is primary, set rules on what goes where, and manage two sets of permissions.
Is OneDrive secure enough for regulated industries?
Yes, especially on E3 and E5. With DLP, sensitivity labels, conditional access, eDiscovery and broad certifications, it meets most requirements when set up well.
How long does moving to OneDrive take?
For 50 people and 2 to 5 TB, plan four to eight weeks, including a pilot, phased moves and training. Complex sharing takes longer.
What happens to shared links?
They stop working once files move. Create new links and update those in documents, emails and websites. Run both platforms for a while, and tell everyone with access.
Which suits remote and hybrid teams?
Both do. OneDrive is better if the team lives in Teams and SharePoint. Dropbox is better with a mix of tools outside Microsoft.
Facing this at your organisation?
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