Upgrade SP2016 to hybrid with one drive

Hi,

My organization is currently running on SP2016 on-premises without one drive access. Recently, we have kicked off discussions to upgrade SP2016 to Hybrid with one drive for file storage.

We use MS365 for teams and other desktop apps such as excel, word, PowerPoint etc. I was wondering if we go down the path of upgrading to hybrid solution, then:

• Do we need to setup one drive in hybrid environment?

• Can we use one drive to replace network shares for file storage?

• what sort of configuration do we need to put in place to store sensitive documents with security labels?

Any input will be highly appreciated.

Thanks