Microsoft is cracking down on users who hoard data in unlicensed OneDrive accounts by deleting it in 2025. Accounts without active licenses for over 93 days will be moved to the recycle bin, and eventually permanently deleted unless retention policies are in place.
Still keeping data in unlicensed OneDrive accounts of long-gone users? The time has come to act: The data could soon become inaccessible or even permanently deleted. In 2024, Microsoft warned about this impending change. Beginning January 27, 2025, any OneDrive user account that has been unlicensed for more than 93 days will either be moved to the recycle bin or archived.
An unlicensed OneDrive account can come about when a user leaves an organization and is deleted from the SharePoint admin center or an administrator removes the license. In the past, an unlicensed OneDrive account represented a nifty loophole for retaining data indefinitely for free. If a user left, their account could be disabled and the license removed, but the data would be retained without paying Microsoft for it. Redmond's take on the situation is: 'Unlicensed OneDrive accounts can pose security and compliance risks, as well as create confusion and duplication of files.' For users exploiting the loophole, times are changing, and Microsoft will start taking steps to close it this month. Starting January 27, 2025, unless retention policies or legal holds are in place, OneDrive data from unlicensed accounts or deleted users will be moved to the recycle bin 93 days after the account becomes unlicensed. The data will remain in the recycle bin for an additional 93 days before permanent deletion. Even with a retention policy or legal holds in place, after 93 days, the data from unlicensed OneDrive accounts or deleted users will still go into an archive. A customer who wants to reactivate that account will be expected to pay $0.60/GB to do so, and then a monthly fee of $0.05/GB for all unlicensed accounts. Microsoft gave the example of an organization with 100 unlicensed OneDrive accounts, each consuming 1 TB for 100 TB. The enforcement means that the 100 accounts would be automatically archived
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Microsoft to Enforce Data Retention Policies on Unlicensed OneDrive AccountsStarting January 27, 2025, Microsoft will begin enforcing data retention policies on unlicensed OneDrive accounts, moving data to the recycle bin or archive after 93 days. Previously, unlicensed accounts allowed for indefinite data retention without paying Microsoft. This change aims to address security, compliance, and file management concerns.
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