Understanding the distinction between OneDrive and SharePoint is crucial, even though they share the same underlying technology. Think of OneDrive as akin to a personal SharePoint site.
In simpler terms, OneDrive can be likened to an individual's personal storage space, much like having a personal home share in the past. On the other hand, SharePoint resembles a file server but with a finely detailed permission structure that can be managed centrally.
It's important to note that OneDrive is not ideal for extensive collaboration with larger groups of people. It is closely tied to a specific user's account. Users may come and go in an organization and moving a shared ex-user's OneDrive folder may impact users currently accessing it.
For internal users without licenses, they can view content for which they have permissions but cannot make any alterations. Additionally, unlicensed user accounts will not appear as options in the People Picker feature of SharePoint Online.
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