Learn about OneDrive backup best practices, including multiple methods of backing up OneDrive data, how to automate OneDrive backup, 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.
OneDrive Backup Best Practices: Why are They Critical?
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 back up 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.
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.”
OneDrive Backup Best Practices: 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 back up 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 to OneDrive Backup Best Practices
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 back up file versions or permissions – it mirrors only the current state of synced files.
OneDrive Backup with Third-Party Solutions
There’s an alternative to attempting to back up OneDrive data 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 back up 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 back up 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 provides 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 back up their data.
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.
Manual Restoration according to OneDrive Best practices
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 Backup for OneDrive
A faster, more scalable approach to OneDrive data restoration 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”
Conclusion on OneDrive Backup Best Practices
Entrusting critical business data to OneDrive makes it critical to back up OneDrive. File retention and syncing capabilities within OneDrive fall far short of providing the data protection that organizations require.
Fortunately, there are many ways to back up 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 back up needs or protecting individual files.
Abide with OneDrive bast practices? Consider a solution like MSP360. 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.
