OneDrive and OneDrive for Business
Microsoft uses the same name for its business and consumer cloud storage services: OneDrive and OneDrive for Business are now more similar than they used to be – in particular they use the same sync client, which fixes a lot of problems with OneDrive for Business – but they're still different services.
OneDrive is Microsoft's consumer cloud storage service, which gives users 5GB of free storage with the option to purchase 50GB for $1.99 a month (£1.99, AU$2), plus Office Web Apps. If you buy Office 365 Home, Personal, or University, you get 1TB of OneDrive space.
OneDrive for Business is the cloud storage service that's part of the business Office 365 plans (and also available as part of on-premise SharePoint Server), with either 1TB or 5TB of storage per user, depending on which plan you choose.
Office 365 tenants also get SharePoint Online, which includes 10GB of secure cloud storage with an extra 500MB per user, and the option of paying for up to 25TB of storage in total. You can choose how the SharePoint space storage is allocated between users and control how they use it, like limiting who they can share documents with or forcing them to encrypt confidential documents using rights management software.
OneDrive for Business, which is confusingly labelled OneDrive in the Office 365 portal to fit on the ribbon, lets users store their own working documents privately. If you're familiar with SharePoint, you can think of it as like the storage in My Site – and documents can still have workflows or be checked in and out.
Users can also share documents with specific people – inside or outside the company – by clicking the three dots next to the file name and choosing Share, or from the properties and preview pane for the file. This interface has been updated a couple of times but it's still easy to share documents and see who has access.
Users can choose whether each person they invite can edit or just view the document and whether or not they need to sign in (it's possible to choose whether to enforce sign in globally). It's very clear if a document is shared and with whom, and you can stop sharing a document at any point. OneDrive for Business storage is part of SharePoint and you can apply policies to it in the same way.
If you want to share a document in OneDrive for Business with everyone (including those to whom you give the URL of your OneDrive for Business), you can move it into the Shared with Everyone folder by default.
If you want to make it available only to a specific group of people, you can put a document into the library for a Team Site instead. That uses the SharePoint tenant storage and you can get those files onto a PC by opening them from SharePoint Online, opening the document library in Explorer (from the ribbon on the SharePoint site) or syncing the document library as a list in Outlook. Team mailboxes also save information into the SharePoint library.
Although the range of storage and sharing options in Office 365 sound confusing, in practice they make a lot of sense. Users get the option to stick to SharePoint shared document libraries or use something that looks like popular free cloud storage services – but which gives you control and security.
Sharing documents is simple and users can easily collaborate (they can even edit the same document simultaneously, in the Office desktop applications or the Office Web Apps) but again, you have tools to control this.
When it first came out, Office 2016 had excellent integration with OneDrive, on both Mac and Windows, letting you browse your online folders and see the folders you'd used recently right on the Backstage menu. A recent update stripped that out on Office 2016 for Windows, replacing it with a very slow dialog that doesn't show any recent folders at all – and doesn't even show you what the file name will be. It's a definite step backwards.
What else is in Office 365?
Depending on which Office 365 plan you choose, you'll get a range of new apps and services. All the plans include Sway, a new authoring tool that uses machine learning to do a lot of the layout work for you, creating responsive layouts that work on smartphones as well as desktop web browsers.
Business plans include the Planner service, as well as GigJam, a collaboration service that lets you share specific pages inside a document – you can just cross out pages and paragraphs you don't want colleagues to see. It's an interesting idea that needs a lot more work to be really useful.
The E5 plan includes the Power BI cloud service that lets you visualise information in charts and dashboards, and an extra tool in Delve called Analytics that analyses your working habits to tell you how much time you spend in meetings and email compared to your colleagues, to help you make the most of your time.
There are also related Office services you can add to Office 365, like Project Online, which is a full-fledged portfolio project management system.
Expect Microsoft to keep adding new services to Office 365 – like the ones it plans to create from LinkedIn.