Microsoft is killing off some popular standalone OneDrive and SharePoint plans because they aren't profitable enough

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Is this another way to push Microsoft 365?

OneDrive on a Laptop
(Image credit: Shutterstock - monticello)
  • OneDrive for Business and SharePoint Online Plans 1 & 2 are being axed
  • Low customer demand, higher operational costs and "nonstandard usage" are to blame
  • Customers are being told to migrate to M365 – revenue for that business continues to rise

Microsoft has pulled the plug on some of the last popular versions of OneDrive and SharePoint due to low demand, but in removing some of the cheapest 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.

Besides low customer demand, Microsoft also warned of higher operational costs and also "unintended or nonstandard usage," suggesting some users might have been using them for cheap bulk storage.

OneDrive and SharePoint plans axed

In 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 capabilities."

Moving towards subscription models will also generate higher and more predictable recurring revenue for the company. In the three final months of calendar 2025, M354 Commercial cloud revenue rose 17% with M365 Consumer cloud revenue up a staggering 29%.

Affected partners are being suggested to move to M365 Business or M365 E3 and E5 plans, once the multi-year phaseout is complete.

Step one per Microsoft's announcement, which was shared with users in late January 2026, will be the end of sale to new customers from June 2026. From January 2027, existing customer renewals will also be phased out, with ongoing contracts retiring in the following months.

By December 2029, Microsoft envisions having ended service entirely. "Customers must transition to Microsoft 365 suites, capacity packs, or pay-as-you-go storage options," the notice reads.

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Craig Hale
Craig Hale

With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

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