- OneDrive for Business and SharePoint Online Plans 1 and 2 are being removed
- Low customer demand, higher operating costs and “non-standard use” are to blame
- Customers are asked to migrate to M365 – revenue for that company continues to increase
Microsoft has pulled the plug on some of the last popular versions of OneDrive and SharePoint due to low demand, but by removing some of the cheapest plans, cloud storage may be getting 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.
In addition to low customer demand, Microsoft also warned of higher operating costs and also “unintended or non-standard use”, suggesting that some users may have been using them for cheap bulk storage.
OneDrive and SharePoint plans discontinued
By removing these two lower tiers, the company is also pushing its Microsoft 365 plans once more: “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 business. In the last three months of calendar 2025, M354 Commercial cloud revenue increased by 17%, while M365 Consumer cloud revenue increased by a staggering 29%.
Affected partners are suggested to move to M365 Business or M365 E3 and E5 plans once the multi-year phase-out is complete.
Step one per Microsoft’s announcement, which was shared with users at the end of January 2026, will see the end of sales to new customers from June 2026. From January 2027, existing customer renewals will also be phased out, with ongoing contracts ending in the following months.
By December 2029, Microsoft envisions ending the service entirely. “Customers must switch to Microsoft 365 suites, capacity packs, or pay-as-you-go storage options,” the announcement reads.
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