Microsoft has started the implementation of a new policy in 2025 that directly affects unlicensed OneDrive accounts. From now on, OneDrive accounts linked to users without an active Microsoft 365 license will be archived, restricting access to their data unless specific billing for these accounts is enabled. The rollout, which will be completed in the coming months, represents a significant change for administrators and companies using the Microsoft 365 ecosystem.
Why are unlicensed accounts archived?
This situation occurs when a user is removed from their Microsoft 365 license but the user account is not deleted. OneDrive storage remains active in the background and, from Microsoft’s perspective, storage capacity is being used without cost. To prevent this unpaid use, Microsoft has decided to archive unlicensed accounts starting January 2025.
Key Dates and Scenarios
The archiving and deletion process depends on when the OneDrive account became unlicensed:
Accounts unlicensed before July 28, 2025:
These accounts will switch to read-only mode on September 26 and will be archived on October 29, 2025. Only administrators will be able to see them, but access to their content will not be possible without enabling billing. They will not be deleted, regardless of retention policies.Accounts unlicensed after July 28, 2025:
With retention policy or legal hold:
After 93 days without a license, the account will be archived and preserved according to retention policies. It will not be deleted unless the retention period ends.Without retention policy and without billing:
The account will move to read-only mode after 60 days, will be archived after 93 days, and will subsequently be deleted following the usual deprovisioning and recycling cycle.- Without retention policy but with billing enabled:
Archiving will occur after 93 days, and administrators will still be able to access the data as long as the storage cost is paid.
Costs to Access Archived Data
Accessing data from an archived account is not free. Microsoft has set a price of $0.60 per GB to reactivate access for 30 days. If the information is not deleted within that time frame, the cost will be $0.05 per GB per month. For instance, reviewing a 100 GB account will incur a charge of $60 for just one month of access. In new accounts without a license after July 28, archived storage will be billed directly at $0.05 per GB per month.
How to Identify and Manage Affected Accounts
Microsoft has enabled a specific report for unlicensed OneDrive accounts in the SharePoint Admin Center. From this panel, administrators can review the status of all accounts, the amount of storage used, reasons for the account being unlicensed, and the archiving or deletion schedule. Additionally, tools like PowerShell and free scripts can be accessed to automate detection and management.
Recommended Steps:
- Review the unlicensed account report in the SharePoint Admin Center.
- Delete accounts with unnecessary content directly from the report or from the Microsoft 365 Admin Center.
- If data preservation is desired, enable billing through Microsoft Syntex and a pay-as-you-go Azure subscription, following the portal’s instructions.
- Move content to another location if you prefer not to incur archiving costs.
Tips to Avoid Surprises
Microsoft recommends that administrators review OneDrive reports in the coming weeks, clean up old accounts, and clearly define which data should be retained and which can be deleted. Failing to act in time may result in high bills for recovering data from archived accounts.
Microsoft’s new policy for unlicensed OneDrive accounts necessitates proactive management of cloud storage and billing. Expert advice is to act before the final archiving, reviewing and managing inactive accounts to avoid data loss and unnecessary expenses.
Source: lazyadmin