Microsoft Reduces OneDrive Storage for Office 365 and Free Users, Eliminates Unlimited Option

Microsoft tonight announced that it was making changes to its OneDrive cloud storage services, reducing the amount of storage both Office 365 and free users are granted and eliminating its unlimited option. The company says that the changes were needed to "ensure that we can continue to deliver a collaborative, connected and intelligent service."

onedrive

Since we started to roll out unlimited cloud storage to Office 365 consumer subscribers, a small number of users backed up numerous PCs and stored entire movie collections and DVR recordings. In some instances, this exceeded 75 TB per user or 14,000 times the average. Instead of focusing on extreme backup scenarios, we want to remain focused on delivering high-value productivity and collaboration experiences that benefit the majority of OneDrive users.

Office 365 Home, Personal and University subscribers will no longer have access to unlimited storage. Instead, these users will be limited to 1 TB of storage. The 100 GB and 200 GB plans are being eliminated for new users and will be replaced with a 50 GB plan for $1.99 a month, which will launch in early 2016. Free OneDrive users will see their storage decreased from 15 GB to 5 GB, with the 15 GB camera roll storage bonus also being eliminated. These changes will also roll out in early 2016.

Microsoft says it wants to make the transition for its users as easy as possible, outlining the steps its taking to notify users of the change. Office 365 subscribers that have more than 1 TB of storage will be notified and will be allowed to keep their increased storage for 12 months. Office 365 customers who no longer desire the service because of the change will be given a pro-rated refund. Free users who have used more than 5 GB of storage will have access to all their files for 12 months after the changes go into effect in early 2016 and will receive a free one-year subscription to Office 365. Individual OneDrive subscribers to the 100 GB and 200 GB plans will not be affected.

In June 2014, Microsoft boosted its storage plans for OneDrive, bumping Office 365 subscribers from 20 GB to 1 TB before adding unlimited storage in October 2014. The company also increased storage of its free service from 7 GB to 15 GB while also decreasing prices for the 100 GB and 200 GB plans.

At its "Hey Siri" event this year, Apple announced price reductions for its own cloud storage service, iCloud Drive. 5 GB of iCloud storage is free while 50 GB is priced at 99 cents per month, 200 GB is $2.99 per month and 1 TB is $9.99 per month.

Popular Stories

Aston Martin CarPlay Ultra Screen

Apple's CarPlay Ultra to Expand to These Vehicle Brands Later This Year

Sunday February 1, 2026 10:08 am PST by
Last year, Apple launched CarPlay Ultra, the long-awaited next-generation version of its CarPlay software system for vehicles. Nearly nine months later, CarPlay Ultra is still limited to Aston Martin's latest luxury vehicles, but that should change fairly soon. In May 2025, Apple said many other vehicle brands planned to offer CarPlay Ultra, including Hyundai, Kia, and Genesis. In his Powe...
iOS 26

iOS 26.3 and iOS 26.4 Will Add These New Features to Your iPhone

Tuesday February 3, 2026 7:47 am PST by
We are still waiting for the iOS 26.3 Release Candidate to come out, so the first iOS 26.4 beta is likely still at least a week or two away. Following beta testing, iOS 26.4 will likely be released to the general public in March or April. Below, we have recapped known or rumored iOS 26.3 and iOS 26.4 features so far. iOS 26.3 iPhone to Android Transfer Tool iOS 26.3 makes it easier...
Apple Logo Black

Apple's Next Launch is 'Imminent'

Sunday February 1, 2026 12:31 pm PST by
The calendar has turned to February, and a new report indicates that Apple's next product launch is "imminent," in the form of new MacBook Pro models. "All signs point to an imminent launch of next-generation MacBook Pros that retain the current form factor but deliver faster chips," Bloomberg's Mark Gurman said on Sunday. "I'm told the new models — code-named J714 and J716 — are slated...
Apple MacBook Pro M4 hero

New MacBook Pros Reportedly Launching Alongside macOS 26.3

Sunday February 1, 2026 5:42 am PST by
Apple is planning to launch new MacBook Pro models with M5 Pro and M5 Max chips alongside macOS 26.3, according to Bloomberg's Mark Gurman. "Apple's faster MacBook Pros are planned for the macOS 26.3 release cycle," wrote Gurman, in his Power On newsletter today. "I'm told the new models — code-named J714 and J716 — are slated for the macOS 26.3 software cycle, which runs from...
iOS 26 Home Feature

Apple Gives Final Warning to Home App Users

Tuesday February 3, 2026 8:55 am PST by
In 2022, Apple introduced a new Apple Home architecture that is "more reliable and efficient," and the deadline to upgrade and avoid issues is fast approaching. In an email this week, Apple gave customers a final reminder to upgrade their Home app by February 10, 2026. Apple says users who do not upgrade may experience issues with accessories and automations, or lose access to their smart...

Top Rated Comments

farewelwilliams Avatar
134 months ago
" a small number of users backed up numerous PCs and stored entire movie collections and DVR recordings"

so you snoop on our files? no thanks.
Score: 80 Votes (Like | Disagree)
sputnikv Avatar
134 months ago
OneDrive was never unlimited as there were rather large limitations on the individual file sizes one could have. That said, I'm cancelling my subscription. There's no reason to invest in a cloud storage where the managers are ok with limiting capacities when convenient. It makes no sense as a customer, why invest?
Score: 42 Votes (Like | Disagree)
Megakazbek Avatar
134 months ago
So please explain me once again why you are entitled to free 75TB of storage at Microsoft's expense.
Because it was THEIR offer of UNLIMITED storage?
Score: 42 Votes (Like | Disagree)
sputnikv Avatar
134 months ago
So please explain me once again why you are entitled to free 75TB of storage at Microsoft's expense.
Because Microsoft sold it as being "Unlimited"
Score: 39 Votes (Like | Disagree)
SteveJobs2.0 Avatar
134 months ago
" a small number of users backed up numerous PCs and stored entire movie collections and DVR recordings"

so you snoop on our files? no thanks.
If people didn't abuse these services there would be no need for companies to go in and see what the hell was taking so much space.
Score: 38 Votes (Like | Disagree)
fogandflower Avatar
134 months ago
If people didn't abuse these services there would be no need for companies to go in and see what the hell was taking so much space.
It is not "abuse" since Microsoft promised unlimited storage. Microsoft, care to define "unlimited"?
Score: 35 Votes (Like | Disagree)