- OneDrive for Business and SharePoint Online plans 1 and 2 will be removed
- Low customer demand, higher operating costs and “non-standard usage” are to blame
- Customers asked to migrate to M365 – revenue from that business continues to rise
Microsoft has canceled some of the latest popular versions of OneDrive and SharePoint due to low demand, but by eliminating some of the cheaper 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.
In addition to low customer demand, Microsoft also warned of higher operating costs and also “unintended or non-standard usage,” suggesting that some users might have been using them for cheap mass storage.
OneDrive and SharePoint plans removed
By eliminating these two lower tiers, the company is also boosting 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 last three months of calendar 2025, M354 commercial cloud revenue increased 17% and M365 consumer cloud revenue increased a staggering 29%.
Affected partners are encouraged to upgrade to M365 Business or M365 E3 and E5 plans once the multi-year phase-out is complete.
The first step according to Microsoft’s announcement, which was shared with users at the end of January 2026, will be the end of sales to new customers starting in June 2026. Starting in January 2027, renewals for existing customers will also be phased out and ongoing contracts will be withdrawn in the following months.
By December 2029, Microsoft plans to have completely ended the service. “Customers should transition to Microsoft 365 suites, capacity packs, or pay-as-you-go storage options,” the notice reads.
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