SAS Studio does not currently offer a way to hide folders in the directory tree that a user doesn't have access to because the file navigation interface functions in the same manner as Windows Explorer where users can see folders even if they cannot access them. As a workaround, you can set the custom root path to each individual user's directory using the <userid> token in the path (ex. set the custom root path to G:\Data\Users\<userid>). Then if users also need to access other directories on the G:\ drive, create global folder shortcuts to each of the directories every user needs access to. This will effectively "hide" the other user directories that users do not have access to in G:\Data\Users\ from the SAS Studio interface.
See SAS® Studio 3.71: Administrator’s Guide > SAS Studio Mid-Tier > Working with SAS Workspace Servers > How to Set Up Different Root Directories and SAS® Studio 3.71: Administrator’s Guide > Configuration Properties for SAS Studio > Configuring Global Folder Shortcuts for more information.
If you'd like to request the ability to hide folders in the SAS Studio navigation panel, create a post in the SASWare Ballot Community.
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