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Aug 09, 2023

OneDrive is the latest cloud provider to kill unlimited storage

Microsoft is putting a cap on OneDrive for Business storage (Plan 2) for new customers Some of the big names in cloud storage services have learned the hard way that there is no such thing as a free

Microsoft is putting a cap on OneDrive for Business storage (Plan 2) for new customers

Some of the big names in cloud storage services have learned the hard way that there is no such thing as a free lunch. If you offer unlimited storage, a few people will take you at your word and start hoarding files. That is why Google ended unlimited storage for Photos users two years ago, and most recently, Dropbox followed suit by killing off its unlimited storage plan for its business-oriented Advanced option. If you're one of those disgruntled users who are planning to switch to some of the leading cloud storage options, like OneDrive, then you might want to think twice, as Microsoft has become the latest provider to discontinue unlimited cloud storage.

It turns out the software giant has quietly ditched OneDrive for Business (Plan 2), as per TechRadar. That tier previously allowed users to store as much data as they liked on Microsoft's servers for just $10 per user per month, assuming their organization was eligible.

This means new customers will only be able to sign up for one stand-alone option: OneDrive for Business (Plan 1). This plan costs $5 a month per user, but cloud storage is capped at 1TB. Depending on the number of users, a company's storage allowance can reach 5TB.

Based on a cached webpage via Archive.org, the unlimited storage option was removed sometime in July. In a statement to TechRadar, a Microsoft representative explained that the company "has streamlined the purchasing process for customers who use OneDrive for Business standalone plans." That said, Microsoft will continue to allow existing OneDrive for Business (Plan 2) subscribers to renew their license and add users.

The Redmond-based firm didn't say why it's killing off a beloved OneDrive tier for businesses that don't want to subscribe to the entire Microsoft 365 suite. Microsoft has done this before, when it discontinued unlimited OneDrive storage for Office 365 customers in 2015.

These types of offers are a great way to attract new customers, but they're not sustainable in the long run. Still, a terabyte of storage is still more than enough for most people, but the removal of the unlimited tier is a blow to Microsoft's competitive position in a crowded cloud storage field.

Jay primarily writes news for Android Police. Before joining AP, he spent the past several years yammering on about the crazy world of Android for various tech outlets.He has reviewed almost every type of phone, from entry-level models to rugged phones. When he's not writing, he goes on long-distance trips with his camera and phones.