The Best Cloud Storage for UK Businesses (and Freeing Up Device Space)
Most small businesses ask this question when a laptop says its disk is full. The quick fix is to move files into the cloud and stop keeping a full copy on every device. The bigger question is which cloud, because the place your files live decides who can reach them, where the data is held and what happens when someone leaves.
This post compares the main options for a UK business. If you’re working through the decision in detail, our companion piece, how to choose the right cloud storage for your small business, is a step-by-step checklist covering UK GDPR and data location.
Start with what you already pay for
Before comparing providers, check your email. If your business uses Microsoft 365 for Outlook, Word and Excel, you already have business cloud storage included:
- OneDrive: every Microsoft 365 Business plan (Basic, Standard and Premium) includes 1 TB of cloud storage per user, according to Microsoft’s UK plan comparison.
- SharePoint: shared storage for the whole organisation, starting at 1 TB plus 10 GB for each licence you hold. This is also where files in Teams channels are kept.
At the time of writing (October 2026), Microsoft lists Business Basic at £5.40 per user per month, paid yearly, excluding VAT. Paying separately for Dropbox or Google Drive on top of that is often paying twice.
How the main providers compare
Microsoft OneDrive and SharePoint
The best fit for most UK businesses already on Microsoft 365. Files open straight into Word and Excel, several people can edit the same document at once, and access follows the same work account and multi-factor authentication as email.
For data location, Microsoft’s Product Terms commit that for tenants provisioned in the UK, Exchange mailboxes, SharePoint and OneDrive files and Teams chats are stored at rest in the UK. That’s a straightforward answer to give a client, an insurer or an auditor who asks where your data is.
The catch is set-up. OneDrive and SharePoint work well when someone has planned the sites, permissions and sharing settings. Left to grow on their own, they turn into the same mess as an old shared drive.
Google Drive (Google Workspace)
A strong choice if your business runs on Gmail and Google Docs. Collaboration is excellent and the interface is simple. A free Google Account includes 15 GB, shared across Drive, Gmail and Photos.
For UK businesses, note that Google Workspace data regions let you choose the United States or Europe, not the UK on its own, and only on certain editions (Business Standard and above). For many companies Europe is fine, since UK law treats the EU as adequate, but check it against your contracts and your regulator’s expectations.
Dropbox
Simple, reliable syncing and good handling of large media files, which is why designers and video teams like it. The free Basic plan includes 2 GB.
Dropbox can store team data on UK servers, but its help pages set conditions: a business plan, at least 10 licences and annual billing. If you also use Microsoft 365, you’ll be running two places to keep files, which makes it harder to know where the latest version is.
Box
Built for businesses that want detailed control over sharing and content governance. Box offers regional storage through Box Zones, including a UK zone with data centres in London and Cardiff. It tends to suit larger or more heavily regulated organisations; most small offices won’t need it if they already have Microsoft 365.
iCloud and other personal services
iCloud (5 GB free) is excellent for backing up an iPhone or a Mac, and services such as pCloud are aimed at individuals. Neither is designed for company files: you can’t centrally control who has access, and when a member of staff leaves, the files leave with their personal account. Keep business data in a business account.
How to actually free up space on your devices
Moving files to the cloud only saves space if the device stops keeping a copy of everything. On Windows, OneDrive does this with Files On-Demand:
- Select the OneDrive cloud icon near the clock, then Settings.
- Under Sync and back up, open Advanced settings and turn on Files On-Demand. Microsoft describes freeing up disk space as the default and recommended setting.
- Right-click any folder you don’t need offline and choose Free up space. The files stay visible and download again when you open them.
- For folders you need on a train or in court, choose Always keep on this device.
Windows Storage Sense can also turn files you haven’t opened for a while back into online-only files automatically. Mac users get similar behaviour from the OneDrive app. We explain how to sync your Desktop and Documents folders to OneDrive automatically in this post on Known Folder Move.
If your devices are still short of space after this, read how much device storage you need before buying anything.
Two things cloud storage doesn’t do
It isn’t a backup. Sync copies mistakes too. If someone deletes a folder, or ransomware encrypts files on a synced laptop, the change flows to the cloud. Recycle bins and version history help, but they have time limits. A separate backup of your Microsoft 365 data is still worth having; see our backup and disaster recovery service.
It isn’t secure by default. Multi-factor authentication, sensible sharing settings and removing leavers’ access are what keep files safe. The provider gives you the tools; someone has to switch them on.
Our view
For a UK business of 5 to 50 people that already uses Microsoft 365, OneDrive and SharePoint are usually the right answer: they’re included, the data stays in the UK, and they fit how your team already works. The work is in setting them up well and moving your files across cleanly. That’s what our cloud services team does, whether you’re moving off an old server, out of Dropbox or out of a set of personal accounts.
Questions people ask
Is OneDrive the same as SharePoint?
They use the same storage behind the scenes. OneDrive is for each person’s own work files; SharePoint (and the Files tab in Teams) is for files a team or the whole company shares. Shared company files belong in SharePoint, so they don’t disappear when someone leaves.
Can we use free personal accounts for business files?
It’s best not to. Personal accounts sit outside your company’s control, so you can’t manage access, enforce multi-factor authentication or recover the files when someone leaves. Under UK GDPR you need to know where personal data is and who can reach it.
Is Microsoft 365 data stored in the UK?
For a tenant set up in the UK, Microsoft’s Product Terms commit to storing Exchange mailboxes, SharePoint and OneDrive files and Teams chats at rest in the UK. You can check yours in the Microsoft 365 admin centre under Settings, Org settings, Organization profile, Data location.
Does cloud storage count as a backup?
Not on its own. Sync copies deletions and ransomware damage as faithfully as it copies good files. Keep a separate backup of Microsoft 365 or whichever service you use. See our backup and disaster recovery service.
Sources
- Microsoft: Compare all Microsoft 365 business plans (UK prices, storage)
- Microsoft Learn: Product Terms data residency (UK commitment for Exchange, SharePoint, OneDrive, Teams)
- Microsoft Learn: SharePoint limits (1 TB plus 10 GB per licence)
- Microsoft Support: Save disk space with OneDrive Files On-Demand for Windows
- Google Account Help: How storage works (15 GB free)
- Google Workspace Admin Help: Data covered by data regions
- Dropbox Help: Where is my Dropbox data stored?
- Dropbox: Dropbox Basic (2 GB free)
- ITPro: Box launches UK-specific Box Zone with data centres in London and Cardiff
- Apple Support: iCloud storage (5 GB free)