Microsoft reduces free OneDrive storage and removes unlimited option

After offering unlimited OneDrive cloud storage for Office 365 subscribers for more than a year, Microsoft is stepping back on the deal. According to Microsoft, too many users were taking advantage of the unlimited space to store entire movie collections, hours of recorded video, and entire PC backups. Microsoft has introduced a new limit of 1 TB on OneDrive storage. At the same time, the company has shortened its free OneDrive storage from 15 GB to 5 GB, and removed its 100 GB and 200 GB plans, to be replaced by a new 50 GB plan for $1.99 a month.

Microsoft is giving Office 365 subscribers that have more than 1 TB of files currently stored on OneDrive a year to move their photos, videos, and documents. On the other hand if you have taken a bottomless storage subscription to Microsoft's productivity suite, Microsoft will offer you a pro-rated refund on your subscription. That also applies to people who signed up for a OneDrive account simply for the free 15 GB of storage be given 12 months at the higher limit, while those who signed up for the 100 GB and 200 GB plans will be able keep their existing deals.

A 1TB of storage is still more than adequate for users who simply want a cloud space to upload their photos or necessary business documents. However the elimination of the unlimited storage space takes away a key selling point that Microsoft had over Google and Dropbox. By only offering 5 GB storage space for new users, OneDrive loses another point in the cloud storage space, especially when, other competitors are offering better ways to actually manage your uploaded files.