Cloud Storage for Business Compared: OneDrive, Google Drive, Dropbox and Privacy-First Options
Cloud storage keeps your files safe, shareable and available from anywhere — but not all services are equal on security, data location or control. OneDrive and Google Drive suit businesses already in those ecosystems, Dropbox is a strong standalone option, and Proton Drive leads on privacy. Crucially, sync is not backup: you still need a separate copy of your files.
Some links on this page are affiliate links: if you sign up or buy through them, Dacros may earn a commission, at no extra cost to you. We only recommend tools we use and rate. Full disclosure.
What cloud storage is really for
Cloud storage does three jobs at once: it keeps your files safe off your own computer, makes them available from anywhere, and lets you share them without emailing attachments back and forth. For a small business, that’s the difference between “the file is on Sarah’s laptop and she’s off sick” and “the file is where it should be and everyone can reach it.”
The main names are Microsoft OneDrive, Google Drive and Dropbox, with privacy-first options like Proton Drive growing fast. They all store files in the cloud, but they differ in ways that matter for security, sharing and where your data actually lives. Here’s how to choose.
The criteria that actually matter
Before comparing brands, know what you’re comparing on:
- Security — encryption, multi-factor authentication and admin controls.
- Sharing — how easily and safely you can share with staff and clients.
- Data location — is your data held in the UK, the EU, or globally?
- Backup vs sync — arguably the most misunderstood point of all, covered below.
OneDrive: the Microsoft 365 default
If you pay for Microsoft 365, OneDrive is already included, and for many small businesses that settles it. Each person gets their own storage, and SharePoint handles shared team files. It works seamlessly with Word, Excel and Teams, so editing a document together is effortless.
OneDrive’s admin controls are genuinely strong — you can manage who sees what, wipe a lost device, and recover deleted files within a retention window. The main downside is that it’s at its best inside the Microsoft world; if your business isn’t committed to Microsoft 365, you lose some of the polish.
Google Drive: the Workspace default
Google Drive is the equivalent for Google Workspace users — included in your plan, tightly woven into Gmail, Docs and Sheets, and excellent for real-time collaboration. Sharing is quick, search is powerful, and it’s very easy for non-technical staff to use.
As with OneDrive, the trade-off is ecosystem lock-in and a need to watch your sharing settings. Google Drive makes it so easy to share a link that files sometimes end up more visible than intended. Review link permissions regularly.
Dropbox: the strong standalone
Dropbox pioneered easy file sync and still does it very well. Its strength is that it doesn’t care which email or documents you use — it’s a neutral, reliable place to store and share files, with tidy version history and dependable sync across devices.
For a business that mixes Microsoft, Google and other tools, Dropbox can be the sensible common ground. The consideration is cost: you’re paying for a dedicated storage service rather than getting it bundled, so it needs to earn its place.
Proton Drive: the privacy-first option
If keeping your data private is a priority — and for firms handling sensitive client information, it often should be — Proton Drive takes a different approach. It’s built around end-to-end encryption, meaning your files are encrypted in a way that even the provider can’t read. Proton is based in Switzerland with strong privacy laws, and it comes from the same team behind the well-regarded Proton Mail.
Proton Drive is a particularly good fit for accountants, healthcare practices, legal firms and anyone whose reputation rests on discretion. It’s less about deep integration with other office tools and more about giving you genuine control over who can access your data. For privacy-conscious businesses, that’s exactly the point.
The one mistake that costs businesses dearly: sync is not backup
Here is the single most important thing in this article. OneDrive, Google Drive and Dropbox are sync services. When you change a file, that change is instantly copied everywhere. That’s brilliant for convenience — and dangerous if something goes wrong.
If a file is deleted, corrupted, or encrypted by ransomware, the sync faithfully copies the damage to every device and to the cloud. Your “backup” is now broken everywhere at once. A true backup is a separate, independent copy that you can restore from even after disaster strikes.
This is why the tried-and-tested approach is to keep more than one copy in more than one place. Our guide to 3-2-1 backups and disaster recovery explains the rule properly, but the short version is: cloud storage is not a substitute for a real backup. You need both.
OneDrive, Google Drive and Dropbox are sync services, not backups — if a file is deleted, corrupted, or encrypted by ransomware, the sync faithfully copies the damage to every device and to the cloud.
Data location and UK compliance
For UK businesses handling personal data, where your files physically sit matters. Some providers let you choose a UK or EU region; others spread data across global data centres. Storing data in the US isn’t unlawful, but under GDPR you should know where your data goes and be able to explain it. If you’re unsure how this applies to you, our GDPR basics for UK small business breaks it down without the legal jargon.
Sharing safely
Whichever service you choose, share files with controls rather than open links: set expiry dates, require passwords for sensitive documents, and default to view-only access. A shared link you can revoke is always safer than an attachment sitting in someone’s inbox forever. And turn on multi-factor authentication on every account — storage is only as secure as the login that protects it.
Which should you choose?
Already on Microsoft 365? OneDrive is included and excellent. On Google Workspace? Google Drive does the same job. Want a neutral, standalone option across mixed tools? Dropbox. Privacy your top priority? Proton Drive. Whatever you pick, remember the golden rule: add a proper, separate backup on top, because sync alone will not save you.
If you’d like help choosing the right storage and getting a real backup in place behind it, get in touch and we’ll set it up so your files are both easy to reach and genuinely protected.
Frequently asked questions
Is cloud storage the same as a backup?
No, and this catches a lot of businesses out. Sync services like OneDrive and Google Drive copy changes instantly across your devices — which means if a file is deleted, corrupted or encrypted by ransomware, that damage syncs too. A backup is a separate, independent copy you can restore from. You need both.
Where is my business data actually stored?
It depends on the provider and your plan. Some let you choose an EU or UK region, others store data across global data centres. For UK businesses handling personal data, knowing where files live matters for GDPR. Check your provider's data residency options, and don't assume — ask. Storing data in the US is not unlawful, but you should understand where it goes.
How much storage does a small business actually need?
Most small teams overestimate. Documents, spreadsheets and PDFs take very little space; it's photos, video and design files that fill drives fast. Start with a plan that gives each user a sensible allowance, then review after a few months. It's easy to upgrade and wasteful to over-buy up front.
What's the safest way to share files with clients?
Use link sharing with controls: set an expiry date, require a password, and give view-only access unless editing is genuinely needed. Avoid emailing sensitive files as attachments — a shared link you can revoke is far safer than a copy sitting in someone's inbox forever.
Dacros — led by Jordan Gilbert
Our guides are written and checked by the Dacros team, led by founder Jordan Gilbert. We run the IT and cyber security for UK small businesses — and hold our own systems to the same standard. About Jordan · About Dacros.
Related guides
The backup password on the laptop you're backing up
Recovery controls fail in a way audits miss: the control quietly depends on the very thing it is meant to recover you from. We found five in our own systems in a week — here's the one question that finds them, and a two-hour fix.
Read → GuideIT and Cyber Security for Charities and Non-Profits in the UK
A plain-English guide to IT and cyber security for UK charities: protecting donor and beneficiary data, controlling volunteer access, and Cyber Essentials on a tight budget.
Read → GuideIT & Cyber Security for Solicitors and Law Firms: A Plain-English Guide
A practical guide to IT security for UK law firms: client confidentiality, SRA-aligned controls, secure email and documents, DMARC, backups and staying compliant.
Read →Want this handled for you?
Dacros runs the IT and security for UK small businesses. Book a free review and we'll tell you what's worth doing — no jargon, no pressure.