Streamline your Backups: Advanced Backup Exclusion rules

Are your backup processes bogged down by unnecessary data? Are you paying for storage of temporary files, old drafts, or irrelevant system logs? In today's data-rich environment, inefficient backups can lead to slower recovery times, inflated storage costs, and wasted resources.

Microsoft OneDrive backups include all available user data to ensure business continuity and data protection. 

However, in real-world enterprise environments, backing up everything is neither practical nor desirable. Take control of your data protection strategy with our new Backup Exclusion Rule feature.

Defining exclusion rules

Before you begin, ensure that you are signed in with administrator privileges.

To define an exclusion rule: 

1. Click Homepage in the navigation panel. 
   
2. Navigate to the relevant OneDrive Backup Task. 
   
3. Click Settings.
   
4. On the Backup Settings screen, click Exclude Backups under Backup Scope. 
   
5. Click Exclude by Folder Path. 
   
6. Click Next.
7. Enter the folder path that you want to exclude for the backup activity and click Next.  
   Example: Documents/Finance
   
   
8. Click Confirm. 
    

Note: The exclusion rule takes effect from the next backup cycle. 

Organizations often need to intentionally exclude certain folders from backups:

• Sensitive data that should not be copied or retained
• Temporary or working folders that change frequently and add no long-term value
• Data restricted by compliance or retention policies, such as regulated information

Without granular control, these folders can complicate audits and expose enterprises to unnecessary compliance risks.

Cloudally enables administrators to define folder-level exclusion rules to control what data is included in Microsoft OneDrive backups.

What are Folder exclusion rules

Exclusion rules are defined using folder paths.

Key features of exclusion rules:

• Exception rules are defined per backup task 
• Rules apply to all users assigned to that task 
• Rules also automatically apply to users added in the future 
• Folder path matching is not case-sensitive 
• Only the specified folder path and its subfolders are affected

Note: Folder path must include at least two levels (e.g., document/foldername)
Example: Documents/Finance

This rule excludes:

• The finance folder only exists under a root folder like Documents.
  Example: All subfolders within Documents/Finance

It does not exclude:

• Any other folder named Finance in a different location

When do exclusion rules take effect

Once a rule is created:

• Exclusion rules take effect from the next backup cycle
• Existing backup data is not modified 
• Ongoing backup activities are not interrupted 

This approach ensures exclusions are applied without affecting historical backups

How to Apply Folder Exclusion Rules

To apply an exclusion rule:

1. Identify the exact OneDrive folder path to exclude
2. Add the folder path to the exclusion list in the relevant backup task
3. Save the configuration

From the next scheduled backup onward, Cloudally automatically enforces the rule across all applicable users.

No manual updates are required when:

• New users are added to the task
• New folders matching the excluded path are created in the future

Common Folder scenarios and how exclusions behave

Folders do not exist

If an exclusion rule is created for a folder that does not currently exist:

• No data is excluded immediately 
• The exclusion automatically takes effect as soon as the folder is created later

Folder is renamed

If an excluded folder is renamed:

• It is no longer excluded if the new path does not match any rule 
• It is included in backups in subsequent cycles

File-level behavior

Backup behavior is determined by where the file resides at the time of the backup cycle.

Files created in excluded folders

Files created directly inside excluded folders are never backed up

Files moved into excluded folders

Files are excluded from subsequent backup cycles

Files moved out of excluded folders

Files are included in backups from their new location

Deleted files and Repeated file activity

• Files deleted at the source are not included in future backup snapshots 
• Deleted files do not appear in search results 
• Files that are added, deleted, and added again inside an excluded folder remain excluded

Audit logging and change tracking

For security and compliance, Cloudally records all exclusion rule changes in the Security Audit log.

Logged events include:

• Creation of an exclusion rule 
• Deletion of an exclusion rule

Each excluded folder path is recorded as a separate audit entry, providing full traceability for administrative actions. 

Conclusion

Folder exclusion rules give organizations precise control over what data is protected in Microsoft OneDrive backups. By excluding unnecessary, sensitive, or non-compliant folders, administrators can:

• Simplify compliance and audits
• Ensure backups focus only on business-critical data

With predictable behavior and full audit visibility, exclusion rules are an essential tool in any Microsoft OneDrive backup strategy.