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Microsoft Cans Old OneDrive Plans for M365 Push
3 Feb
Summary
- Microsoft is phasing out older OneDrive and SharePoint plans.
- This move aims to drive users towards Microsoft 365 subscriptions.
- Revenue for Microsoft 365 cloud services is already rising significantly.
Microsoft has announced the discontinuation of popular, lower-cost standalone versions of OneDrive and SharePoint, including Plan 1 and Plan 2 for both services. These plans will be unavailable for new customers starting June 2026, with existing renewals phasing out from January 2027. The company cited low customer demand, increasing operational costs, and potential non-standard usage as reasons for the change.
This strategic move is designed to redirect users toward Microsoft 365 subscription suites, which Microsoft states are the primary method for accessing SharePoint and OneDrive capabilities. This transition is expected to enhance predictable recurring revenue, as Microsoft 365 Commercial cloud revenue rose 17% and Consumer revenue increased 29% in the last quarter of calendar 2025. Full service for the affected plans is anticipated to conclude by December 2029, requiring customers to adopt Microsoft 365 suites, capacity packs, or pay-as-you-go storage.
