Learn how to backup OneDrive, including multiple methods for OneDrive data protection, how to automate the backup process, and ways to secure OneDrive backups, such as using immutable backups. This guide also compares the pros and cons of multiple OneDrive backup approaches, including native OneDrive backup tools, manual backup, and the use of dedicated, third-party backup platforms such as MSP360 Managed Backup for OneDrive.
As a fully managed, cloud-based data storage solution, Microsoft OneDrive is a convenient, highly scalable way to store data. But, like any other storage service, OneDrive may also be prone to failure and cybersecurity attacks.
The service could go down (as happened, for example, during a ten-hour period in July 2024, when the entire Microsoft 365 platform experienced an outage). Users could accidentally delete data. Vulnerabilities could enable the installation of malware, leading in turn to ransomware attacks.
For all of these reasons, maintaining an effective, efficient strategy on how to backup OneDrive is critical for any organization that entrusts essential data to the MIcrosoft 365 service. Read on for guidance as we unpack everything businesses need to know how to backup OneDrive.
Why is it critical to know how to Backup OneDrive
Microsoft OneDrive is hosted in the cloud and managed by one of the world’s largest technology companies. As such, it may not seem important to backup data stored on OneDrive. It can be tempting to assume that the service is so reliable that there is no real risk of data loss.
But such an assumption is a huge mistake for OneDrive backup. While cloud-based data storage services tend not to fail as frequently as on-premises storage, the cloud is by no means immune to data loss. Issues like the following could lead to the destruction of critical data, even on an enterprise, cloud-based service like OneDrive:
- Accidental data deletion by employees.
- Data sync errors that cause file corruption or loss of the latest version of a file.
- Ransomware attacks launched by threat actors who take advantage of vulnerabilities in OneDrive or the broader Microsoft 365 platform.
- Disruptions to the OneDrive service that make data temporarily inaccessible.
Financial Impact of Microsoft 365 Data Loss
Statistics show that there is good reason to be concerned about OneDrive data loss. While Microsoft doesn’t publish data about incidents related to OneDrive specifically, independent research shows that 43.3 percent of all data breaches involve services on the Microsoft 365 platform, including OneDrive. What’s more, Microsoft reported a 275 percent year-over-year increase in ransomware attacks against its customers in 2024, another sign of the persistence of attacks targeting data stored on OneDrive and similar services.
It’s important to note, too, that the terms of Microsoft’s shared responsibility model place much of the onus for data protection on customers. Microsoft is responsible for managing the underlying data storage infrastructure and services. But it’s up to businesses that use OneDrive to protect against risks like accidental data deletion or the infiltration of malware inside their accounts.
Plus, although OneDrive provides built-in data versioning and retention features, these are not true backup protections, because they don’t guarantee that businesses can restore all versions of their data. Nor do they ensure ongoing data access in the event of disruptions to OneDrive itself.
On top of this, legal, operational and compliance mandates may require businesses to have OneDrive backup practices in place. Regulators and auditors typically won’t be satisfied if a business does not take steps to protect critical data stored in OneDrive.
Which Data Should You Backup in OneDrive?
The first step on how to backup OneDrive effectively, is identifying which types of data to prioritize. Some information is more important to the business than other data, and it’s important to focus on protecting the most critical data.
Here’s an overview of the most important types of data to backup in OneDrive.
Data with High Business Impact
Backing up data based on its potential business impact ensures that the most critical assets are protected against loss. Operational, legal and financial consequences can be severe if essential documents or records are accidentally deleted or corrupted. Whether it's project documentation, strategic plans or audit trails, the loss of such data can halt operations, lead to regulatory non-compliance or result in direct financial penalties. By using OneDrive’s backup features strategically organizations can prioritize recovery of business-critical files and minimize disruption.
Sensitive or Regulated Data
OneDrive may store sensitive or regulated data such as personally identifiable information (PII), customer contracts, tax documents and medical or financial records. These data types are often subject to strict compliance requirements like GDPR, HIPAA or SOX. Failing to backup and protect this information can lead to legal liabilities, breaches of trust and heavy fines. A robust backup strategy within OneDrive not only ensures data availability but also supports compliance through encryption, audit logging and secure recovery mechanisms.
Volatile and Frequently Updated Data
Data that changes frequently – such as sales figures, inventory levels or user logs – needs consistent and rapid backup to avoid discrepancies and loss of recent updates. OneDrive's versioning and synchronization features can help, but relying solely on those without independent backups can leave gaps in protection. If the latest data is overwritten or lost due to syncing errors or user mistakes, recovery may be difficult without backups. Regularly backing up these fast-changing files ensures you can restore the most accurate and up-to-date information.
Large Files and Structured Data
Large files like videos, images and CAD drawings, as well as structured datasets such as unstructured databases, are often harder to restore and may not be fully covered by standard OneDrive syncing. These files are also resource-intensive to recreate or reprocess if lost. Backing them up separately ensures faster recovery and preserves data integrity. Since these types of files are often central to creative, engineering or research workflows, maintaining consistent and reliable backups helps avoid major productivity and financial setbacks.
High-Value and Confidential Data
Intellectual property, trade secrets and financial models represent some of the most valuable data an organization can possess. Losing access to this information or having it fall into the wrong hands could damage competitive advantage or trigger legal issues. While OneDrive provides access control and encryption features, additional backups – ideally stored separately – add a layer of protection against insider threats, ransomware or accidental deletions. Ensuring secure, redundant storage of these assets is critical for maintaining confidentiality and business continuity.
Native OneDrive Backup Options and Limitations
Microsoft OneDrive offers a few built-in backup options and tools. These can help to protect certain types of data – but, as explained below, they are not sufficient for meeting large-scale backup needs.
PC Folder Backup: Sync Desktop, Documents and Pictures to OneDrive
PC Folder Backup is a OneDrive feature that automatically syncs key user folders – Desktop, Documents and Pictures – with your OneDrive cloud storage. To enable it, click the OneDrive cloud icon in your system tray, then go to Help & Settings > Manage Backup. From there, you can toggle the folders you want to sync. Once enabled, files in those folders are automatically uploaded to OneDrive and become accessible from any synced device, offering both protection from local hardware failure and cross-device availability.
However, this feature has notable limitations. It only supports three default folders (Desktop, Documents, Pictures), so other critical directories – like Downloads or custom folders – aren’t backed up unless manually moved. Additionally, PC Folder Backup doesn’t support full system restore, so operating system files, apps and custom configurations aren’t protected. There's also no built-in versioning within this feature, meaning older file revisions can’t be recovered through this method alone.
Version History and Recycle Bin
OneDrive includes two helpful tools for recovering lost or changed files: Version History and the Recycle Bin. Version History lets users restore previous versions of a file stored in OneDrive. To access it, right-click a file in OneDrive (via the web or File Explorer integration) and choose Version History. This is useful for recovering from accidental edits or overwriting. The Recycle Bin, on the other hand, allows users to retrieve deleted files for a limited time – typically 30 days for personal accounts or up to 93 days for business users.
After this time or when a user manually deletes items from the Recycle Bin, they move into the Second-stage Recycle Bin, which is only accessible to administrators and can be restored by them.
Despite their usefulness, both tools are limited. They operate on a per-file basis, meaning you must manually restore individual files rather than bulk-recovering folders or large sets of data. This can be tedious and inefficient in the case of widespread data loss. Version History is only available for files stored in OneDrive, not those synced outside supported folders and retention periods are capped at 30 days for most types of data. Neither tool should be relied upon as a comprehensive or long-term backup strategy.
For these reasons, the Recycle Bin falls short of meeting most standard definitions of backup – such as that of Gartner, which states that true data protection requires the ability to “capture point-in-time copies of enterprise data for the purpose of recovering it from multiple data loss scenarios, enhancing data protection initiatives and expanding data insights and access capabilities.”
How to Backup Onedrive - Sync to Local Devices
OneDrive’s sync feature allows files stored in the cloud to be mirrored on your local device and vice versa. This enables real-time access to your files, both online and offline. Any changes made on your device are reflected in OneDrive and across all synced devices, ensuring you’re always working with the latest version of a file. This is especially convenient for users who frequently switch between devices or require access to files while offline.
However, OneDrive Sync is not a true backup solution. Because changes sync in real time, accidental deletions, overwrites or ransomware-encrypted files will also sync across devices – potentially destroying or corrupting files everywhere. Without a separate, time-stamped backup, recovery from such events can be very difficult. In addition, syncing doesn’t capture system files, application data or settings and it lacks point-in-time restore capabilities, making it unsuitable as a standalone disaster recovery method.
Manual Backup Methods for OneDrive
Another approach to OneDrive backup is to backup data manually using basic data copying or file system tools. Here again, these methods can help to meet simple data protection requirements, but they fall far short of enterprise-scale OneDrive backup assurance.
Download Files via Browser
This method involves navigating to the OneDrive web interface, selecting files or folders and clicking Download to save them locally. It’s simple and doesn’t require any additional tools or configuration. This approach is useful for quickly creating a backup snapshot of your files or archiving specific items.
However, this method captures only a one-time snapshot, so it doesn’t support ongoing or automated backups. Users must manually repeat the process to ensure up-to-date backups and it can be time-consuming for large file sets. Additionally, file metadata such as sharing permissions and version history may not be preserved in the downloaded files.
Use PowerShell to Export Files
PowerShell scripts, often using the Microsoft Graph API or PnP PowerShell, allow users to automate OneDrive file exports. These scripts can loop through folders, download content and even schedule regular backups through Windows Task Scheduler. This method offers flexibility and scalability for tech-savvy users or admins managing multiple accounts.
Despite its power, this method comes with limitations. Setting it up requires familiarity with scripting, authentication and Microsoft 365 APIs. Moreover, many scripts don’t fully capture metadata, version history or permission settings and API limits may throttle large transfers. It's best used as part of a broader backup strategy rather than a standalone solution.
Sync and Copy to External Drive is paramount on how to backup OneDrive
With OneDrive’s desktop sync client enabled, files stored in OneDrive appear in a local folder on your device. From there, you can manually or automatically copy that folder to an external drive using a backup tool or scheduled task. This method ensures that a physical copy of your cloud files is available for disaster recovery.
Still, this approach has important drawbacks. It doesn’t preserve file permissions, sharing settings or version history, since it only replicates the current state of files. If a file is deleted or altered in OneDrive, the changes may propagate to the synced version and, by extension, your external copy – unless carefully managed.
Manually Move or Copy Files to the OneDrive Folder
Users can also drag and drop or copy files directly into their OneDrive folder in File Explorer. Once placed there, the files sync automatically to the cloud using the OneDrive client. This method is straightforward and effective for selective, user-driven backups, such as moving important work documents into cloud storage.
However, this method relies entirely on user discipline and the local OneDrive client. There’s no built-in automation or fail-safe and if the sync client is paused or fails, files might not actually be uploaded. It’s also easy to overlook files stored outside the OneDrive directory unless they’re intentionally moved or copied in.
Backup OneDrive to an External Drive via Sync Location Change
This more advanced method involves unlinking your OneDrive account, then moving the OneDrive folder to an external drive and finally re-syncing OneDrive to use the new location. This effectively stores a live copy of your cloud files on an external disk, providing redundancy and freeing up internal storage.
While it offers persistent external backups, this setup is sensitive to misconfiguration. Unplugging the external drive while OneDrive is syncing can cause errors or data loss. There's also the risk of hardware failure or theft of the physical device. Additionally, this method doesn’t backup file versions or permissions – it mirrors only the current state of synced files.
Microsoft 365 Compliance Tools as Backup
Yet another approach to OneDrive backup is to leverage compliance tools available as part of the Microsoft 365 platform. Specifically, businesses can use features like data retention policies to force the platform to keep copies of their data on hand for a specified period.
The challenge with this strategy is that retention policies are not a true backup solution. They don’t guarantee that businesses can recover data in the event that OneDrive goes down. Nor do they provide access to multiple versions of data. They also only protect whichever data is configured for retention, which often includes only some data assets – so data retention doesn’t provide comprehensive data protection or backup and recovery capabilities. Last but not least, there is no way to perform point-in-time or cross-user data restoration using compliance tools.
As for other Microsoft 365 compliance capabilities, such as legal hold and eDiscovery features, these are reactive solutions designed to serve legal needs, not protect data.
OneDrive Backup with Third-Party Solutions
There’s an alternative option on how to backup OneDrive manually (which is a slow and tedious process) or relying on native OneDrive and Microsoft 365 that are not designed for enterprise-scale backup. It’s using a dedicated, third-party backup and recovery solution for OneDrive, like MSP360 Backup for Microsoft 365/Google Workspace.
Third-party solutions offer a host of data protection capabilities that are not available from OneDrive itself, such as:
- The ability to backup folder structures and metadata
- Ransomware protection and immutable backups
- Encryption of data in transit and at rest to provide more robust security during backup operations
- Audit logs and granular role-based access controls to secure backup data
- Automated alerts & failure email notifications
- Item-level backup ability
- Multi-factor authentication, backup history, and customizable retention
Further reading Roles and Permissions in MSP360 Backup for Microsoft 365 and Google Workspace
Further reading Multi-Factor Authentication (MFA) as a Must-Have for MSPs
MSP360 helps you how to backup OneDrive with these core OneDrive backup capabilities. It also offers additional features that go above and beyond the basics of OneDrive backup – including API-level backup of OneDrive content, file versioning, and backup of metadata and sharing settings. What’s more, MSP360 provides immutable storage and automated data retention. And it offers a multi-tenant dashboard, simplifying OneDrive backup administration for MSPs and IT teams.
Further reading Immutable Data Backups Explained and How It Works in MSP360
Going even further, MSP360 Managed backup for OneDrive enables instant backup of specific files and folders within OneDrive, giving businesses fine-grained control over when and how they backup their data.
How to use MSP360 OneDrive Backup
Check Prerequisites
Ensure users have commercial or trial licenses for MSP360 Backup for Microsoft 365 / Google Workspace, and that Drive Backup is enabled.
Enable OneDrive Backup
- On the dashboard, click Configure Backup.
- Toggle Drive Backup on.
- Click Apply to Enabled Users or enable users individually via the Users page.
Start the Initial Backup
- Click Save to create and schedule the backup task.
- Track progress in Task Manager.
Run Urgent Backup
- Click Run Backup to update backup immediately.
Select the required user
- Go to the backup console.
- Select a user to view their OneDrive contents (Admins can browse all users).
Select a Restore Point
- Click View Restore points on the horizontal menu.
- Select a date to switch to that restore point.
You will be switched to the selected restore point. You’ll now see folders and documents (including earlier versions) as they existed at the selected time and can perform restore operations for them.
To return to the latest backup, click Return to current date in the restore point banner.
Search Files and Folders
- Enter the full or partial filename in the search bar.
- Results will reflect the currently selected restore point.
Further reading To learn more, read the full technical guide “How to backup OneDrive in MSP360”
How to Restore OneDrive Backup Files
Backing up OneDrive data is only part of the process for effective data protection. Equally important is ensuring the ability to restore data quickly and efficiently in the event of an incident.
How to backup OneDrive - Manual Restoration
As with data backup, it’s possible to restore OneDrive files using manual approaches. For example, you can navigate to www.office.com, login into your Microsoft 365 account and restore files from the OneDrive Recycle Bin.
In addition, you can restore OneDrive files synced to a device through the Windows Recycle Bin on that device.
These approaches may work well enough for restoring certain files on a one-time basis. However, they’re not a practical way to restore large volumes of data at scale.
Restoration with MSP360 on how to backup OneDrive
A faster, more scalable approach on how to backup OneDrive and restore them, is to automate the process using a solution like MSP360 Backup for OneDrive.
You can do this using the following steps in MSP360:
- Open MSP360 Backup Console
- Select file/folder or click All Restore
- Choose the destination and a Restore Point
- Click Restore
You can restore data directly to OneDrive or to an external, custom location of your choice.
Further reading To learn more, read the full technical guide “How to backup OneDrive in MSP360”
Cloud vs. Local Backup for OneDrive
One of the advantages of a third-party, storage-agnostic backup solution like MSP360 is that you can store backups in a variety of locations, including public clouds. Part of the process for devising an effective OneDrive backup strategy is to choose the right backup approach.
Here are the pros and cons of each option.
How to Backup OneDrive with a Local Backup
Local storage – such as external hard drives, NAS devices or internal servers – offers distinct advantages. Restoring from a local backup is typically much faster than downloading from the cloud and you retain offline access, which is useful during internet outages. Perhaps most importantly, local storage gives you full control over your data, from security protocols to physical access and storage configurations.
On the downside, local backups are vulnerable to physical risks like theft, fire or natural disasters. They’re also subject to hardware failure, such as disk corruption or degradation over time. Without additional safeguards, a purely local backup strategy may fall short in a critical recovery scenario.
Cloud Backup
Cloud storage is a popular choice for backing up OneDrive data due to its flexibility and resilience. The primary advantage is remote accessibility – you can restore or access files from anywhere with an internet connection. Cloud backups are also inherently disaster-resistant, as data is stored offsite, protecting it from local threats like theft, fire or hardware damage. Additionally, most cloud services offer virtually unlimited scalability, making it easy to expand your backup footprint as your OneDrive data grows.
However, cloud backups come with trade-offs. Restoring large volumes of data can be slower, especially over limited internet bandwidth. You're also dependent on the cloud provider’s uptime and performance, which can impact access in the event of service outages. While cloud platforms are generally reliable, this reliance introduces a layer of external risk.
Cloud-to-Cloud Backup
Cloud-to-cloud (C2C) backup is a specialized form of cloud backup designed to protect data that already resides in cloud platforms such as Microsoft 365 (including OneDrive) by copying it to a separate, independent cloud environment. Unlike traditional cloud backups that typically involve uploading data from local devices to the cloud, C2C backup operates entirely within cloud ecosystems, using secure APIs to create automated, point-in-time snapshots. This approach ensures faster backup and recovery, eliminates reliance on local hardware, and provides protection from platform-specific risks like accidental deletion, ransomware propagation, or service disruptions.
The 3-2-1 Rule for OneDrive Backup
The 3-2-1 backup rule is a best-practice guideline: keep three copies of your data, stored on two different types of media, with one copy stored offsite. When applied to OneDrive, this might mean keeping your original files in OneDrive, a local backup on an external drive and an additional copy in a cloud backup platform.
MSP360 supports this hybrid backup strategy by allowing you to configure backup plans that write to both local storage and cloud destinations. This ensures faster local recoveries while maintaining offsite protection for disaster recovery. Using both local and cloud backups together gives you the best of both worlds – speed, redundancy and resilience.
Best Practices on how to Backup OneDrive
To get the most out of OneDrive backup, consider the following best practices.
Align with Business Continuity and DR Objectives
A solid strategy on how to backup OneDrive should support your organization's business continuity and disaster recovery (DR) goals. Start by defining your Recovery Point Objective (RPO) – how much data loss is acceptable – and your Recovery Time Objective (RTO) – how quickly you need data restored. Clearly documenting recovery workflows, including who is responsible for what and which tools to use, ensures fast organized responses to incidents like data loss, corruption or ransomware.
Combine Native and Third-Party Options
While OneDrive offers version history, recycle bin and sync capabilities, it’s risky to rely solely on native features for backup, as noted above. Syncing is not a real backup and can propagate accidental deletions or ransomware. Instead, implement layered redundancy by using third-party tools like MSP360 Backup for OneDrive, which provide automated, scheduled backups with customizable retention and encryption. Combining both native and external tools enhances resilience and flexibility.
Storage, Sync and Cloud-Only File Considerations
Attention is required on to how to backup OneDrive, when it comes to storage and syncing files. Monitor sync status regularly to ensure all files are available locally and aren’t stuck in sync errors. Be mindful of your OneDrive storage quota, as hitting limits can prevent backups or file uploads. For cloud-only files (enabled by Files On-Demand), ensure they're downloaded before backup – many tools, require local access to backup content reliably. It means they can backup files that are physically available on the computer’s storage, not just placeholders in the cloud.
Regular Backup Testing and Verification
Creating backups isn’t enough – they must be tested and verified regularly. Schedule test restores to confirm that data can be successfully recovered when needed. It’s also important to validate the integrity of restored files and confirm that permissions and sharing settings are preserved, especially when working in regulated environments or with collaborative data.
Security and Encryption in OneDrive Backups
Protecting your OneDrive backups from unauthorized access is critical. MSP360 supports AES-256 encryption for data at rest and TLS encryption during transmission. Use role-based access controls and audit logs to track activity and restrict access appropriately.
For sensitive or regulated data, you can enable a private encryption key for zero-knowledge encryption meaning only you can decrypt the backup. This key can be created and managed directly within your backup solution or stored securely using tools like BitLocker (Windows), FileVault (macOS), or third-party encryption software for external backups. Be warned, however: if you lose the key, your data is unrecoverable.
Set Retention Policies Aligned with Compliance Requirements
Retention policies should reflect your organization's regulatory obligations. For instance, GDPR, SOX or industry-specific mandates may require data to be retained for a set period – or deleted after a threshold. MSP360 allows you to customize retention policies, helping you stay compliant while avoiding unnecessary storage costs. Striking the right balance between legal requirements and resource optimization is essential for sustainable, compliant data management.
Common Mistakes to Avoid
In addition to knowing which best practices to follow when backing up OneDrive data, it’s critical to know what not to do. Avoid the following mistakes:
- Relying solely on Microsoft: As explained above, Microsoft 365’s built-in backup capabilities are not true data protection solutions.
- Not testing restores: Testing is critical for ensuring you can successfully recover data.
- Backup without encryption: Encryption for data at rest and in transit provides critical security.
- Failing to disable Files On-Demand: Files On-Demand is a OneDrive feature that helps save space on your computer by keeping some files online-only (they appear in your file list, but are not physically stored on your device until you open them). This setting is found in OneDrive under:
OneDrive > Settings > Sync and Backup > Advanced settings > Files On-Demand.In general, disabling Files On-Demand is a best practice because it ensures that data is actually copied to your devices rather than only being stored in the cloud.
FAQs About OneDrive Backup
Can I use OneDrive as a backup destination?
Yes, you can but not recommended. OneDrive is a cloud-based file storage solution. It provides a handful of built-in data retention capabilities, but it includes no enterprise-scale, high-security data backup and protection capabilities.
Can I restore deleted files from 6 months ago?
Unless you backed up your data using a third-party backup solution, the answer is most likely no. Typically, you can only restore deleted files within OneDrive itself if you deleted them within the past few days (in which case you can recover them using the Recycle Bin). The only way to ensure long-term data protection is to backup your data outside of OneDrive.
Does version history count as backup?
No. Version history doesn’t protect against risks like permanent deletion of a file by users or ransomware attacks.
What makes MSP360 different from sync tools?
MSP360 offers a variety of advanced OneDrive backup features for controlling how backups take place, securing backup data, distributing backups across multiple storage locations and more.
Can MSP360 help with compliance audits and how to backup OneDrive?
Yes. Because MSP360 generates a complete record of backups and offers advanced reporting features, businesses can easily document their data protection processes to meet compliance and auditing requirements.
What if my files are “cloud-only”?
You can backup “cloud-only” files in OneDrive using third-party backup solutions.
Can I use MSP360 on Mac for OneDrive backup?
Yes. MSP360 offers cross-platform support for OneDrive backup, including on Macs.
How do I recover previous versions of files?
You can recover previous file versions in MSP360 by browsing your file history and selecting a file and version to restore.
Conclusion on how to Backup OneDrive
Entrusting critical business data to Microsoft 365 makes it critical how to backup OneDrive. File retention and syncing capabilities within OneDrive fall far short of providing the data protection that organizations require.
Fortunately, there are many ways on how to backup OneDrive data – although some are more efficient and scalable than others. Native OneDrive and Microsoft 365 backup capabilities, as well as manual backup using tools like PowerShell, can be helpful for small-scale backup needs or protecting individual files.
Consider a solution like MSP360, to make the process of how to backup OneDrive easy. Not only is MSP360 easier to use at scale, but it also offers advanced features – like the option to store backups across multiple locations, advanced reporting and alerting and robust security controls – that are missing from other OneDrive backup solutions.
