Prepare for OneDrive Change: Archiving Unlicensed Accounts Post-January 27

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Brace yourselves, IT administrators and business users: Microsoft is spring-cleaning, and it's starting with unlicensed OneDrive for Business accounts. Starting January 27, any OneDrive account that has been unlicensed for over 90 days will face the digital equivalent of "out of sight, out of mind"—archived and possibly inaccessible. Let’s unpack what this means, why it’s happening, and how you can prepare for the OneDrive purge.

What's Happening?

Microsoft will archive OneDrive for Business accounts that are unlicensed for more than 90 consecutive days. These unlicensed accounts are typically left dangling when either:
  • An employee quits or is terminated, and their account isn’t closed or transitioned.
  • A license is removed from an account by an administrator but isn’t reapplied or permanently deactivated.
This means businesses that rely on these unlicensed accounts to “store just a little longer” are in for two big surprises:
  • Inaccessibility: Once archived, the data in these accounts becomes unavailable to end users.
  • Reactivation Costs: Reactivating these accounts will not only incur a fee, but might also test your patience with a 24-hour delay for restoration.

Why the Change?

In the words of Microsoft, leaving unlicensed OneDrive accounts unchecked invites a variety of issues:
  • Security Risks: Unmonitored accounts could expose sensitive data to leaks or breaches.
  • Compliance Concerns: In regulated industries, dormant or unlicensed accounts could lead to compliance headaches.
  • File Duplication Woes: Duplication makes for bloated storage and unnecessary confusion.
If you're thinking, "Oh, I'll deal with it later," Microsoft is one step ahead. Once archived, restoring these accounts doesn’t come cheap.

What Does Archival Entail?

Once an account is archived:
  • Storage Costs Apply: You’ll pay $0.60/GB upfront to restore the data, followed by $0.05/GB per month for ongoing archive storage.
  • Temporary Access: Even after paying for restoration, your access is limited to 30 days.
  • Default Tenant Settings: If you haven’t adjusted your organization's tenant retention policies, unlicensed accounts will stay inaccessible when archived.
For businesses affected, failing to act means your archived OneDrive data gets closer to the point of no return: potential deletion. This policy doesn’t apply, however, to education, GCC, and DoD organizations, which remain exempt for now.

How to Prepare

IT administrators aren't flying blind here. Microsoft offers concrete steps to help navigate the transition:

1. Identify Unlicensed Accounts

Head to the SharePoint admin center. Microsoft allows you to generate reports that detail:
  • Username and email address.
  • Account type.
  • Date of last activity.
By scrutinizing this data now, you’re primed to act before January 27 arrives.

2. Evaluate Action Plans

Once you’ve identified unlicensed accounts, here's what you can do:
  • Delete: Remove accounts that no longer serve a purpose. Goodbye dead weight!
  • Re-License: Reapply licenses to retain critical data and functionality.
  • Archive (and Pay the Price): Budget for the costs of archive storage if you need to preserve older, unlicensed accounts but cannot reactivate them fully.

Why You Should Care

This isn’t just chatter for IT admins; it’s a wake-up call for businesses too. Consider this: unlicensed accounts often linger after an employee departs. While tying up loose ends (or forgetting about them entirely) might seem harmless, it’s a golden ticket for data vulnerabilities. The archival policy ensures that businesses are either proactive about data management or pay dearly for procrastination.
And let’s not ignore the cost factor. At $0.60/GB for reactivation, organizations with large unlicensed OneDrive accounts may find themselves forking over startling sums just to access archived content. Following that monthly $0.05/GB fee keeps adding up if the account isn't closed decisively or properly managed.

What About Retention Policies?

Microsoft’s announcement highlights tenant retention configurations. These built-in safety nets dictate how long deleted or unlicensed data is held before purging. If you’ve customized your tenant policies, congratulations—you might sidestep some of the harsher consequences! Otherwise, it’s time to:
  • Revisit and adjust your tenant retention settings, if necessary.
  • Confirm alignment with compliance or record-keeping standards within your industry.

Impact on Businesses

While the policy doesn’t immediately affect GCC and Government users, private-sector businesses will feel the heat:
  • Financial Burdens: Costs of reactive management (archival fees, reactivation costs, storage subscriptions).
  • Operational Risks: Potential delays in accessing critical data.
  • Security Breaches: Untracked accounts leave a known but ignored attack vector for malicious actors.

Microsoft’s Bigger Picture

This move aligns with Microsoft’s broader push to enforce Zero Trust practices, emphasizing identity and access controls. An unmonitored OneDrive account—no matter how benign—is a loose end Microsoft can’t afford, nor wants, to dangle in its ecosystem.
Furthermore, this tightened OneDrive cleanup signals Microsoft's ongoing adjustments to license-based services. Whether it’s fair (or feels like a cash grab) is up for debate. But, love it or hate it, businesses must play by Microsoft’s evolving rules.

Summary

As of January 27, Microsoft will begin archiving unlicensed OneDrive accounts that have been inactive for over 90 days. IT administrators can identify and manage these accounts using the SharePoint admin center. Options include deletion, re-licensing, or paying for archival storage if retention is necessary. This change aims to improve data security, compliance management, and overall resource allocation—but will inevitably come with added costs for unprepared businesses.
Here’s the concise takeaway: Audit your OneDrive accounts now. Determine whether unlicensed accounts are worth re-licensing, deleting, or paying to archive because procrastinating could leave your organization dealing with inaccessible data—or hefty costs. Take care of it before January 27 slips around the corner, or you may just end up footing a bill you weren't ready for.
Have any thoughts or concerns about Microsoft’s OneDrive archival policy? Join the discussion and share your tips on how to manage unlicensed accounts effectively on WindowsForum.com!

Source: Petri IT Knowledgebase Microsoft to Archive Unlicensed OneDrive Accounts This Month