- OneDrive for Business and SharePoint Online Plans 1 & 2 are being axed
- Low customer demand, higher operational costs and “nonstandard usage” are to blame
- Customers are being told to migrate to M365 – revenue for that business continues to rise
Microsoft has pulled the plug on some of the last popular versions of OneDrive and SharePoint due to low demand, but in removing some of the cheapest plans, cloud storage could be about to become more expensive for some users.
Four of its standalone cloud storage plans – SharePoint Online Plan 1 and Plan 2, and OneDrive for Business Plan 1 and Plan 2 – will no longer be available.
Besides low customer demand, Microsoft also warned of higher operational costs and also “unintended or nonstandard usage,” suggesting some users might have been using them for cheap bulk storage.
OneDrive and SharePoint plans axed
In removing these two lower tiers, the company is also pushing its Microsoft 365 plans once again: “As Microsoft continues to invest in secure, scalable, and integrated experiences, Microsoft 365 suites remain the primary way customers access SharePoint and OneDrive capabilities.”
Moving towards subscription models will also generate higher and more predictable recurring revenue for the company. In the three final months of calendar 2025, M354 Commercial cloud revenue rose 17% with M365 Consumer cloud revenue up a staggering 29%.
Affected partners are being suggested to move to M365 Business or M365 E3 and E5 plans, once the multi-year phaseout is complete.
Step one per Microsoft’s announcement, which was shared with users in late January 2026, will be the end of sale to new customers from June 2026. From January 2027, existing customer renewals will also be phased out, with ongoing contracts retiring in the following months.
By December 2029, Microsoft envisions having ended service entirely. “Customers must transition to Microsoft 365 suites, capacity packs, or pay-as-you-go storage options,” the notice reads.
Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds. Make sure to click the Follow button!
And of course you can also follow TechRadar on TikTok for news, reviews, unboxings in video form, and get regular updates from us on WhatsApp too.
https://cdn.mos.cms.futurecdn.net/JucJ4RrRuxQynsKUY6Yunj-1920-80.jpg
Source link
