Office 365

OneDrive Files On-Demand helps you access all your files in OneDrive without having to download all of them and use storage space on your device

When you turn on Files On-Demand, you’ll see all your files in File Explorer and get new information about each file. New files created online or on another device appear as online-only files, which don’t take up space on your device. When you’re connected to the Internet, you’ll be able to use the files like every other file on your device.

With OneDrive Files On-Demand, you can:

• Save space on your device by making files online only
• Set files and folders to be always available locally on your device

• See important information about files, such as whether they are shared

• See thumbnails of over 300 different file types even if you don’t have the required application installed to open it.

Your files will have these statuses in File Explorer:

• Online-only Files: Online-only files don’t take up space on your computer. You see a cloud icon for each online-only file in File Explorer, but the file doesn’t download to your device until you open it. You can’t open online-only files when your device isn’t connected to the Internet.

• Locally available files: When you open an online-only file, it downloads to your device and becomes a locally available file. You can open a locally available file anytime, even without Internet access. If you need more space, you can change the file back to online only. Just right-click the file and select “Free up space.”

• Always available files: Only files that you mark as “Always keep on this device” have the green circle with the white check mark. These always available files download to your device and take up space, but they’re always there for you even when you’re offline.

For more information visit the link: https://support.office.com/en-us/article/learn-about-onedrive-files-on-demand-0e6860d3-d9f3-4971-b321-7092438fb38e