How to migrate files to OneDrive for Business

There are many reasons an organization might want to move from file servers to M365, like supporting remote work, getting rid of aging on-prem hardware, or cutting down on infrastructure costs. But get the process wrong, and you’ll end up with a mess of broken permissions and frustrated users instead.

The best approach depends on the shape of your environment. Some teams work in simple setups, but others deal with more moving parts and need tighter control, while large migrations add pressure on scale. Some admins need richer reporting to keep everything on track. And in many cases, permission handling ends up driving the final decision.

Read on to learn what a file-share-to-OneDrive migration actually involves and how Microsoft’s native Migration Manager handles the basics. We’ll show you where a more structured tool like ShareGate Migrate can help when you need extra visibility and control, as well as trade-offs and how to choose the option that best fits your needs.

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What is Microsoft OneDrive for Business?

OneDrive for Business is a user-specific cloud file storage solution included with Microsoft 365 licenses. It’s a personal work library for each of your users, accessible across all their devices.

From a technical standpoint, OneDrive is built on the SharePoint platform, which means it shares the same underlying infrastructure and admin tooling. Identity and access are managed through Microsoft Entra ID, giving you controls for things like guest access and authentication policies.

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How to migrate to OneDrive for Business using Microsoft Migration Manager

Microsoft provides a free, native tool in the SharePoint admin center called Migration Manager. The platform is designed to handle migrations from a file server or network drive into OneDrive for Business. 

These steps detail how to perform a file share to OneDrive migration using Migration Manager.

Step 1: Set up migration agents

Migration Manager operates on an agent-based model. This means you need to provision and maintain a dedicated machine for the migration, adding to your setup time. 

Begin by installing a software agent on each Windows computer or virtual machine that has access to your source file shares. This agent acts as the bridge, reading source data and transmitting it to the cloud.

Setup requires two sets of credentials: First, you’ll need SharePoint Administrator or OneDrive Administrator rights to authorize access to the destination Microsoft 365 tenant. Second, a Windows account with at least “Read” access to all source files is required.

Step 2: Scan and assess file shares

With agents active, you can define your source paths in the SharePoint admin center. Adding a network path to a file share triggers an automatic scan by the agent.

This scan analyzes all source content and produces a summary in the Migration Manager user interface, along with detailed downloadable reports. These reports provide the first concrete view of potential migration issues and flag specific problems such as file paths exceeding SharePoint Online limits, permission errors on files the agent can’t access, and in-use locked files.

While the tool is effective at identifying these problems, it doesn’t remedy them. You’re responsible for cleaning up the source environment before initiating the actual data copy. 

Step 3: Copy to OneDrive

After preparing the source environment, you can then create migration tasks in the Migration Manager interface. This involves mapping the scanned source paths to target OneDrive for Business user accounts.

Migration Manager supports incremental runs—after the initial bulk copy, you can re-run a task to transfer only new or changed files. This allows you to keep the destination synchronized with the source in the lead-up to the final cutover.

During the migration, it’s important to monitor for errors. The same issues identified during the scan, such as long file paths or locked files, will appear as skipped items. This is where the process can become a grind, as you’ll have to track down and fix each skipped file manually.

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Migrate files to OneDrive for Business with ShareGate

ShareGate Migrate is for IT teams that want a migration process they can see and control from start to finish. You get a more structured, scalable approach than Microsoft’s free tool. And it doesn't require you to provision agents or dedicated servers. You connect directly to your Microsoft 365 tenant and your source environment and work from there. 

Here’s a step-by-step look at the typical ShareGate Migrate workflow.

Step 1: Connect and analyze (No agents required)

First, connect ShareGate directly to your Microsoft 365 tenant and map your on-premises file share as a network drive. ShareGate runs as a client-side application, accessing file shares through mapped drives—so there’s no need to install agents on your source systems, simplifying setup and reducing infrastructure overhead.

Step 2: Pre-migration assessment and in-tool remediation

Before moving files to OneDrive, run a pre-check to identify potential migration issues like invalid characters and unsupported file or folder names. ShareGate flags these issues so you can address them ahead of time.

In many cases, ShareGate can automatically handle fixes during migration—for example, replacing unsupported characters based on your settings. For other issues, such as problematic file or folder names, you may need to update the source content before re-running the migration.

Step 3: Granular migration and custom mapping

The migration itself is managed via a drag-and-drop interface. You select your source content, choose a destination, and configure your settings. This is where you get more granular control, since you can easily migrate content in batches, such as by folder or organizational structure.

ShareGate also lets you manage how permissions are carried over during migration. You can map users and groups and control how permissions are applied at the destination, helping ensure access aligns with your intended structure in Microsoft 365. 

Step 4: Validate with the Permissions Matrix Report

After migration, you can use ShareGate’s reporting tools to review your environment and verify access. The Permissions Matrix Report (PMR) provides a clear view of who has access to what across SharePoint and OneDrive, helping you confirm that permissions were carried over as expected and align with your intended structure.

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Using ShareGate as your OneDrive migration solution

To achieve a successful migration, you need to ensure your new environment is secure, manageable, and set up for long-term success. While Microsoft’s native tools can get your data from A to B, they often slow you down, leaving you juggling scripts and running into limits that make large moves harder than they should be. 

ShareGate is built for teams that need a faster path, clearer reporting, and more predictable execution as complexity grows. And with custom permission mappings, your security model doesn’t have to bend to fit the tool. You define how access should translate, and it lands cleanly at the destination.

Once your migration is done, ShareGate Protect picks up where Migrate left off, giving you continuous visibility into who has access to what, flagging inactive accounts, and keeping external sharing in check.

If you’re facing a complex file share migration, ShareGate gives you a clear and predictable path from planning to long-term governance. To see how Migrate and Protect can support your team, you can book a demo with a ShareGate expert.