The Register: The unlicensed OneDrive free ride ends this month

Source URL: https://www.theregister.com/2025/01/07/unlicensed_onedrive_fun_ends/
Source: The Register
Title: The unlicensed OneDrive free ride ends this month

Feedly Summary: Kind old Microsoft is worried about security and compliance … nothing to do with a free storage loophole
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.…

AI Summary and Description: Yes

**Summary:** Microsoft is enforcing new policies on unlicensed OneDrive accounts that could lead to data loss for organizations if unaddressed. Starting January 27, 2025, unlicensed accounts will be archived or deleted after 93 days, posing significant security and compliance risks. Organizations are urged to take action to avoid potential repercussions.

**Detailed Description:**

– Microsoft has issued a warning regarding the status of unlicensed OneDrive accounts, stating that starting on January 27, 2025, any unlicensed account will either be moved to the recycle bin or archived if inactive for more than 93 days.
– An “unlicensed” account arises when a user leaves an organization, resulting in deletion from the SharePoint admin center or when an administrator removes the license. Previously, these accounts served as a loophole to retain data for free.
– The impending enforcement serves to address security, compliance risks, and potential confusion due to duplicated files associated with unlicensed accounts. Key points include:

– **Data Retention Policies:**
– Without retention policies or legal holds, OneDrive data from unlicensed accounts will be sent to the recycle bin after 93 days, followed by an additional 93 days before permanent deletion.
– Data with retention policies will still be archived after 93 days.

– **Cost Implications:**
– Reactivating a deactivated account incurs a one-time fee of $0.60/GB and a recurring fee of $0.05/GB monthly.
– For instance, an organization with 100 unlicensed accounts consuming 1 TB each could expect significant costs upon reactivation.

– **Administrative Options:**
– Admins can extract data from unlicensed accounts or apply licenses to avoid data loss.
– Failing to act will lead to loss of data, which can have legal implications, as indicated by Rob Helm, managing VP of research at Directions on Microsoft.

– The situation emphasizes the necessity for organizations to reevaluate their data management strategies and compliance measures related to unlicensed accounts to avoid penalties or legal issues from missing data due to inactivity.

Overall, this development is vital for IT security and compliance professionals monitoring data governance within cloud services like OneDrive. They need to proactively manage data belonging to former employees to protect the organization from potential risks and costs.