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Urgent Action Required: Upcoming Deadlines for Unlicenced OneDrive Accounts

Article

Publish Date:

13 June 2025

As a trusted Microsoft Partner, we’re committed to helping our customers stay ahead of critical changes that impact their Microsoft 365 environment.

One such change is fast approaching: Microsoft is enforcing new policies around unlicensed OneDrive accounts, and it’s essential that organisations take action before the upcoming deadlines.

Trustack MSP Cyber Security, IT Services, IT Support. White OneDrive logo featuring two overlapping cloud icons above the word "OneDrive" in bold, white text on a black background, emphasizing the importance of DLP in business security to address supply chain risk.

What's Changing?

Microsoft has announced that OneDrive accounts without an active license will be subject to automatic deletion after a defined grace period.
This change is part of Microsoft’s broader effort to streamline data retention and ensure compliance with licensing agreements.

Key Deadlines to Know

Timeline for accounts unlicensed before 28 July 2025

  • By 26 September 2025 –  Microsoft will automatically transition OneDrive content for users who no longer have a valid license to read-only mode.
  • By 29 October 2025 – All unlicensed accounts will be archived.

    After this period, data recovery will no longer be possible unless proactive steps are taken.

Timeline for accounts unlicensed after 28 July 2025

 

  • Following a 60-day grace period from the time a user’s license is removed to act before the OneDrive content is transitioned to read-only mode.
  • Following a 93-day grace period from the time a user’s license is removed the account and its related content will be archived.


    After this period, data recovery will no longer be possible unless proactive steps are taken.

Trustack MSP Cyber Security, IT Services, IT Support. The Microsoft 365 logo, featuring a four-color square icon to the left of the text "Microsoft 365" in gray font on a transparent background, highlights The Importance of DLP in Business Security for organizations facing supply chain risk.

What You Should Do Now

  1. Audit your OneDrive Accounts – Identify users who no longer have active licenses but still have OneDrive content. This includes former employees, contractors, or inactive accounts.
  2. Backup Critical Data – If you need to retain data from unlicensed accounts, ensure it is backed up or migrated to a secure location before the deletion window closes.
  3. Assign Appropriate Licences – For accounts that need to remain active, assign the necessary Microsoft 365 licenses to prevent deletion.
  4. Automate with PowerShell or Admin Centre – Use Microsoft 365 admin tools or PowerShell scripts to monitor and manage OneDrive retention policies efficiently.
  5. Communicate Internally – Make sure your IT, HR, and compliance teams are aware of this policy change and coordinate data retention strategies.

How Trustack can assist you

As your Microsoft Partner, we offer:

  • Automated license and storage audits
  • Data migration and backup solutions
  • Policy configuration support
  • Training and change management guidance
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