- OneDrive for Business and SharePoint Online 1 and 2 plans are discontinued
- Low customer demand, higher operational costs and “non-standard usage” are to blame
- Customers being asked to migrate to M365 – revenue from this business continues to grow
Microsoft has discontinued some of the latest popular versions of OneDrive and SharePoint due to low demand, but by removing 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.
Aside from low customer demand, Microsoft also warned of higher operational costs as well as “unintended or non-standard usage,” suggesting some users might use them for cheap mass storage.
OneDrive and SharePoint plans deleted
By 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 features. »
Moving towards subscription models will also generate higher and more predictable recurring revenue for the business. During the last three months of calendar year 2025, M354 commercial cloud revenue increased 17%, while M365 consumer cloud revenue increased 29%.
Affected partners are suggested to upgrade to the 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 from June 2026. From January 2027, renewals for existing customers will also be phased out, with current contracts ending in the following months.
By December 2029, Microsoft plans to have ended the service completely. “Customers should upgrade to Microsoft 365 suites, capacity packs, or pay-as-you-go storage options,” the notice states.
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