- Pro
Is this another way to push Microsoft 365?
When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works.
(Image credit: Shutterstock - monticello)
- Copy link
- X
- Threads
Sign up for breaking news, reviews, opinion, top tech deals, and more.
Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.You are now subscribed
Your newsletter sign-up was successful
An account already exists for this email address, please log in. Subscribe to our newsletter- 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.
You may like-
Microsoft 365 is hiking prices for businesses - here's how much it will cost you
-
Microsoft apologizes to 365 users over confusing software tiers
-
Best cloud storage of 2026: tested, reviewed and rated by experts
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.
Are you a pro? Subscribe to our newsletterContact me with news and offers from other Future brandsReceive email from us on behalf of our trusted partners or sponsorsBy submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over.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.
Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds. Make sure to click the Follow button!
And of course you can also follow TechRadar on TikTok for news, reviews, unboxings in video form, and get regular updates from us on WhatsApp too.
TOPICS Microsoft
Craig HaleWith 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!
View MoreYou must confirm your public display name before commenting
Please logout and then login again, you will then be prompted to enter your display name.
Logout Read more
Microsoft 365 is hiking prices for businesses - here's how much it will cost you
Microsoft apologizes to 365 users over confusing software tiers
Best cloud storage of 2026: tested, reviewed and rated by experts
Microsoft shutters fan favorite deployment platform, to the dismay of many
Cloud storage is a vital part of business - and this IONOS plan will cost you less than a pizza this Cyber Monday
Microsoft Office has been rebranded to Microsoft 365 Copilot, or has it?
Latest in Pro
Microsoft Teams will now let you shout about how great you are at work
The year of the AI agents? More outages? Here’s what lies ahead for IT teams in 2026
Dangerous new malware targets macOS devices via OpenVSX extensions - here's how to stay safe
Malwarebytes and ChatGPT team up to check all of those suspicious texts, emails, and URLs with one simple phrase
Adobe Animate is shutting down as company focuses on AI - although business users get a slight stay of execution
AI as the key to overcoming retail’s next challenge: achieving operational excellence
Latest in News
Where hi-fi, art and chemistry collide, you get Molecular Audio
I didn't even know Netflix was on the PS3, but it won't matter soon — the streaming app will leave the console after 16 years next month
Independent auditors confirm NordVPN never stores your data – for the 6th time
Sea of Remnants has 400+ named NPCs in its open world, each 'with their own individual story arcs' that can be altered by your actions
Windows 11's February update is imminent — here are the top 4 features
SpaceX and xAI merger starts a new AI space race, but big questions remain
LATEST ARTICLES- 1Our chances of seeing a new Nvidia-powered handheld PC with RTX 5070-level power are improving – but I'd expect the price to be a dealbreaker
- 2These speakers are what you’d find in the center of an art, molecular science and hi-fi Venn diagram and I want them
- 3I didn't even know Netflix was on the PS3, but it won't matter soon — the streaming app will leave the console after 16 years next month
- 4Dangerous new malware targets macOS devices via OpenVSX extensions - here's how to stay safe
- 5Quordle hints and answers for Wednesday, February 4 (game #1472)