Published Jul 26, 2024
Enforcement for unlicensed OneDrive accounts began on January 27, 2025, and will complete by October 29, 2025. Accounts unlicensed before July 28, 2025, will transition to read-only mode by September 26, 2025, and be archived by October 29, 2025. Accounts unlicensed after July 28, 2025, will follow a 60-day read-only and 93-day archive timeline. Admins should monitor and manage unlicensed accounts accordingly.
Updated April 29, 2025: We have updated the content. Thank you for your patience.
Enforcement began on January 27, 2025. The rollout has slowed to ensure a safe roll-out with sufficient time for admins to adjust. Admins should anticipate that it takes time for all unlicensed accounts to complete the enforcement process. The initial enforcement rollout will be complete by October 29, 2025.
Timeline for accounts unlicensed before July 28, 2025
Timeline for accounts unlicensed after July 28, 2025
Example:
When will this happen:
General Availability (Worldwide): We began rolling out late January 2025 and expect to complete by late October 2025 (previously late March).
How this will affect your organization
After this storage policy goes into effect in your tenant, any OneDrive user accounts that have been unlicensed for more than 93 days will be archived automatically and will become inaccessible to end users. Admins can view these accounts with admin tools, but the accounts will not be accessible to users until admins take action on them. For example, a OneDrive account that became unlicensed on August 1, 2025 will be inaccessible to users as of October 1, 2025.
As an admin, you can view a list of unlicensed accounts in your tenant by navigating to SharePoint admin center > Reports > OneDrive accounts. Some admins will have access to this page as soon as July 26, 2024, but most admins will be able to access the page closer to August 16, 2024.
The Unlicensed OneDrive accounts page that will be in Microsoft admin center:
After the unlicensed accounts are automatically archived, you can access the files in these accounts by enabling unlicensed account billing in the Microsoft 365 admin center. Once enabled, unlicensed account billing applies to all unlicensed OneDrive accounts in your tenant. There is a fee of $0.05/GB/month to store unlicensed accounts in the Microsoft 365 Archive, and a fee of $0.60/GB to reactivate accounts stored in the Microsoft 365 Archive. Account reactivation takes up to 24 hours and provides 30 days of access to the account, and then the account returns to an archived state.
If you take no action for OneDrive accounts that have been unlicensed for longer than 93 days, these accounts will remain inaccessible to end users until you set up an Azure subscription and enable unlicensed account billing in the Microsoft SharePoint admin center. This action will not affect tenants who have not changed the default tenant retention settings.
What you need to do to prepare
To prepare for this change, admins can view a list of all the unlicensed OneDrive accounts in their tenant by going to the SharePoint admin center and navigating to Reports > OneDrive accounts (this page will be rolled out to admins between July 26, 2024 and August 16, 2024). This page will provide the number of unlicensed accounts and why the accounts are unlicensed. You may have unlicensed accounts in your tenant for four reasons:
After you have taken inventory of your unlicensed accounts, we recommend that you take the following action before January 27, 2025.
*At this time, these changes do not apply to customers in Education tenants. An Education tenant is any tenant with more than 50% education licenses. Any tenant with fewer than 50% education licenses is considered commercial. However, for any education tenant, unlicensed OneDrive accounts consume pooled storage and can pose security and compliance risks. IT admins can view the unlicensed accounts on the OneDrive accounts page to identify unlicensed accounts and take action.
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