Today Microsoft announced some very substantial changes to OneDrive storage. OneDrive is of course Microsoft’s consumer cloud storage product, formerly named SkyDrive. When the service first launched in 2007, early users received 5 GB of online storage. This amount was increased to 25 GB per user in 2008. The service was changed again though in 2012 limiting new users to 7 GB of free storage, however existing users could be grandfathered into the old 25 GB tier, and at that time the free storage tier was more storage than competing cloud storage solutions such as Google Drive and Dropbox.

Times have changed though, and responding to the recent free storage increases and paid storage price drops implemented by Google, Microsoft has now increased the free storage pool to 15 GB. According to Microsoft’s internal data, 75% of users have less than 15 GB in their OneDrive at the moment, with the remainder likely being on some sort of paid tier. This is certainly a bonus to anyone who is using OneDrive or thinking of using it, but the big news comes attached to a subscription service.

On April 28th, OneDrive for Business announced a file storage increased from 25 GB per user to 1 TB per user coming in the next couple of months, and now that same 1 TB per user is coming to all subscribers of Office 365. Office 365 Home, Personal, and University subscriptions will all include the 1 TB of storage starting in July. Let’s go over what each tier gives you and their pricing:

 

Office 365 Consumer Versions
  University Personal Home
Number of Users 1 1 5
Number of Devices 2 PCs, Macs, or Tablets 1 PC or Mac, and 1 Tablet 5 PCs or Macs, and 5 Tablets
Included Applications Word, Excel, PowerPoint, OneNote, Outlook, Publisher, Access
Skype Minutes 60 Skype world minutes per month
OneDrive Storage 1 TB 1 TB x 5 Users (5 TB total)
Pricing $79.99/4 years $6.99/month
$69.99/year
$9.99/month
$99.99/year

Office 365 Home has just had a big amount of value added to it. For $100/year, users now have access to 5 TB of online storage, as well as the complete Office Suite for five people. Even if just looking at the storage available, this is a big advantage for OneDrive over the competition right now with Google offering 1 TB of storage for $120 alone.

But what if you don’t need Office? OneDrive has also had its price slashed for just storage tiers by 70% to be competitive with Google Drive:

 

Consumer Cloud Offerings
  OneDrive Google Drive iCloud DropBox Box Amazon Cloud Drive
Free Storage 15 GB 15 GB 5 GB 2 GB 10 GB 5 GB
Paid Storage (USD/year) 100 GB - $24
200 GB - $48
1 TB - $70 (With Office 365 Personal)
5 TB - $100 (5 x 1 TB w/Office 365 Home)
100 GB - $24
1 TB - $120
10 TB - $1200
20 TB - $2400
30 TB - $3600
20 GB - $12
200 GB - $50
Tiers up to 1 TB not priced yet
100 GB - $99
200 GB - $199
500 GB - $499
100 GB - $120 20 GB - $10
50 GB - $25
100 GB - $50
200 GB - $100
500 GB - $250
1 TB - $500
Versioning Office files (30 days) Yes (30 days) No Yes (30 days)
Unlimited with PackRat addon
No (Personal Tier) No
File Restore Yes (30 days) Yes (30 days) No Yes (30 days)
Unlimited with PackRat addon
Yes (30 days) Yes
Operating System Support Windows
OS X
Android
iOS
Windows Phone
Windows
OS X
Chrome OS
Android
iOS
Windows
OS X
iOS
Windows
OS X
Linux
Android
iOS
BlackBerry
Kindle Fire
Windows
OS X
Android
iOS
Windows Phone
BlackBerry
Windows
OS X
Android
iOS
Kindle Fire

Clearly Microsoft is hoping to get some consumer lock-in with these tiers as it would be difficult to move away from their services if you have a couple of hundred gigabytes of data stored with them. Whether it works or not will remain to be seen but it’s an impressive offering, and something that other cloud storage vendors can’t really compete against because like it or not, Office is still an important tool for a lot of people. When Office 365 first launched, it was an interesting idea to try to migrate people from pay once own forever software to a subscription service, but at the time the value-add wasn’t really there other than always having the latest version. Considering a lot of people may only have bought Office Home and Student for around $100 (which allowed up to three installs) it was a tough sell to try and get people to switch over to paying $100/year for basically the same service. Today’s addition as well as the recent tie-in of Office365 with both the iPad and Android versions of Office can possibly sway people who were on the fence. 

 

Source: OneDrive Blog

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  • Roland00Address - Monday, June 23, 2014 - link

    Sorry that should be what is the largest single size file you can upload to one drive? Reply
  • Brett Howse - Monday, June 23, 2014 - link

    It's unfortunately still stuck at 2 GB per file. Reply
  • solidus-flux - Monday, June 23, 2014 - link

    I just synced an 800 MB file in about 3 minutes. I watched skydrive.exe get a steady 4.5 MB/sec in the Resource Monitor. Not bad! Reply
  • althaz - Monday, June 23, 2014 - link

    I didn't see this in the article anywhere, but these changes take effect next month according to the linked blog post. Reply
  • solidus-flux - Monday, June 23, 2014 - link

    The article actually says "On April 28th, OneDrive for Business had its file storage increased from 25 GB per user to 1 TB per user" but that seems to be wrong. Reply
  • Brett Howse - Monday, June 23, 2014 - link

    Updated the article with a link to the OneDrive for Business news. Reply
  • Brett Howse - Monday, June 23, 2014 - link

    Whoops sorry forgot to add that in there - article is updated Reply
  • DanNeely - Monday, June 23, 2014 - link

    On the amazon side, it's worth noting that the 50gb and larger plans all come with storage for 250k songs outside the data cap. Depending on what you're backing up this can make their plans a lot more competitive than the numbers in the table make them look. eg in my case I'd only save a dollar defecting to MS or Google. Reply
  • althaz - Monday, June 23, 2014 - link

    Matched songs don't count towards your cap for MS or Google. Beside that, 250k songs is about 1-2Gb meaning you save $1 and get double the space (going with MS over Amazon), or save $26 and get the same space. Reply
  • DanNeely - Tuesday, June 24, 2014 - link

    Your average song is only a 4-8k file... Do you have worlds largest midi collection or something? If you actually had 250k songs that'd be about a terabyte of mp3s/etc. Reply

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