Microsoft extends free 1 TB OneDrive storage offer to Office 365 consumers

Microsoft extends free 1 TB OneDrive storage offer to Office 365 consumers

Summary: Microsoft is providing Office 365 Home and Personal subscribers, not just business users, with 1 TB of OneDrive storage for free.


Microsoft is using free cloud storage as a carrot to attract more customers to sign up for its Office 365 subscription plans.


Back in April, Microsoft announced it was providing all OneDrive for Business customers with 1 terabyte (TB) of cloud storage per person for free. On June 23, Microsoft extended that offer to users of its consumer Office 365 plans — Office 365 Personal and Home — as well.

Microsoft officials announced the new OneDrive prices and caps in a blog post on June 23.

Office 365 Home users, paying $9.99 per month, will get 1 TB per person for up to five people. Office 365 Personal subscribers, paying $6.99 a month, will get 1 TB per subscription, as will Office 365 University, who pay $79.99 for four years.

All Office 365 customers — Home, Personal, University and business — will get their 1 TB of free storage by next month. Current OneDrive and/or Office 365 subscribers don't need to do anything to get the additional storage or pricing deals, as Microsoft will automatically make the adjustments next month.

Microsoft also announced other storage pricing moves on June 23, designed to make Microsoft more competitive against other cloud-storage providers, especially Google, which cut its consumer-storage pricing a couple months ago. Microsoft execs are touting as Redmond's differentiators the fact that OneDrive storage doesn't have to be carved up among different apps, and that users don't have to jump through a bunch of hoops, such as convincing friends to sign up for OneDrive, in order to get the 1 TB of free storage.

For OneDrive users who aren't Office 365 subscribers, OneDrive now will come with 15 GB of storage for free, up from 7 GB. (Microsoft came up with the 15 GB figure based on its own telemetry data, officials said, which indicates that three out of four people have less than 15 GB of files stored on their PCs.)

Microsoft also is offering users without Office 365 subscriptions monthly subscription storage options for reduced rates. Users can get 100GB of storage for $1.99 for 100 GB (previously available at $7.49 per month) and $3.99 for 200 GB (previously $11.49 per month).

Users can store photos, videos and/or documents in OneDrive. Everything that is stored there is saved in Azure blob storage. I asked Microsoft execs whether Amazon's recent announcement that it will provide free, unlimited photo storage for all Fire phone users will lead Microsoft to offer a similar deal and was told by a spokesperson the Amazon announcement has no impact on Microsoft's cloud-storage plans.

Topics: Cloud, Google, Microsoft, Storage


Mary Jo has covered the tech industry for 30 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.


Log in or register to join the discussion
  • 2 GB file limit still a big hit, though

    OneDrive is overall the best of the cloud drives, at least for my needs, due to the excellent Office integration.

    But one feature, a totally arbitrary file-size cap, still limits it's usefulness for sharing things like home videos.
    x I'm tc
    • Onedrive cap

      Agreed with x. Of they want us to move everything to the cloud, they have to free up that 2GB cap. I have a Windows home server with 6 TB of drive space. I have roughly 2 TB of HD movies and TV shows. (All my own purchased DVD's and Blu-Rays, just ripped to a digital format.) The Xbox One does not do DLNA as a stand alone currently. My only assumption is that they want people to use One drive space. Well free up that 2 GB cap, and I I'll move over my entire library.
    • "...due to the excellent Office integration."

      That might be part of the problem. MS is so focused on Office-for-everything, they haven't (yet) considered the demands of video, etc.
    • yup

      I've hit this cap once. You'd think they would let you upload it anyway
  • Do they mirror everyone's data mirrored for free?

    to the NSA and... whatever other 3-letter gov't agency? Because THAT would be so convenient.
    • why can't i edit the

      • re:

        Because you're an ABM troll.
        Sir Name
    • nah

      You have to use Google services to get that benefit...
    • Mirror to the NSA, CIA?

      Always, always, encrypt anything you send to OneDrive on the client side before uploading to the cloud.
      Stephen Malan
  • bye bye docs/drive

    not only is google docs worse, but now it is more expensive. ha!
    • re: bye bye docs/drive

      Not only is GDrive worse, they also scan your files, documents so they can serve spam / advertisement.

      Why in the world would someone agree to that?
  • not quite perfect yet

    still need to be able to stream mp3 content out of onedrive storage, preferably via xbox music. They've been hinting at this for years but have yet to deliver. some people have large locally stored collections and would rather not use a music service.
    • RE: not quiet perfect yet.

      Not sure about the X360 but I've seen it done with the XBOne.
      Those who hunt Trolls
  • Re: Microsoft extends free 1 TB OneDrive storage

    Sounds Awesome. Does that include video files that are less than 2GB in size ?
    • Why wouldn't it?

      Just make sure you only store videos you legally own.
      • Re: Just make sure you only store videos you legally own.


        Would Microsoft scan your private files, submit them to the various "rights owners" (why only to some?) and based on their feedback send the police your way?
        • Re: Just make sure you only store videos you legally own

          Encrypt your files before you upload them.
          Stephen Malan
  • Good Value just got better

    I think if you compare to the free plans from Google and Dropbox this is pretty much the best one going. The paid plans are really good too.

    Starting to make buying a USB drive redundant...

    Stephen Townsley
  • OneDrive rocks for a few reason

    OneDrive rocks for a few reasons

    1. Great integration with the OS and Office
    2. Works great across all platforms
    3. and privacy

    I would never use GDrive due to the fact that they scan our files, documents, emails etc. that’s a no-no. Compare this to Microsoft’s EULA

    “As part of our ongoing commitment to respecting your privacy, we won't use your documents, photos or other personal files or what you say in email, chat, video calls or voice mail to target advertising to you.”

    Sorry, but I just dont trust Google.. at all. period.
    • It's on almost every platform.

      They don't have a desktop Linux client. I occasionally use desktop Linux, but i still am forced to use dropbox for that. If they had a Linux client they really would be the most cross platform cloud service.