Microsoft ends some standalone SharePoint and OneDrive plans • The Register

Microsoft has announced it will retire standalone SharePoint Online and OneDrive for Business plans, citing low customer demand and higher operational costs associated with maintaining these offerings. The software giant delivered the news in a note to partners, explaining it is "evolving its cloud storage and collaboration offerings and is retiring the standalone SharePoint Online (SPO) plan 1 and plan 2 and OneDrive for Business (ODB) plan 1 and plan 2 SKUs."

The standalone SharePoint Online Plan 1 costs $5 per user per month and includes 1TB of cloud storage, while Plan 2 doubles the cost at $10 per user per month and adds unlimited cloud storage along with more advanced features. OneDrive for Business Plan 1 similarly offers a terabyte of cloud storage at $5 per user per month, with Plan 2 providing up to 5TB of storage, adding tools including data loss prevention, and extending to provide 25TB of storage for users who are part of a team.

Microsoft attributes its decision to several factors: "low customer demand for standalone offerings, increased instances of unintended or nonstandard usage, and higher operational costs associated with maintaining these plans." The Register speculates that the phrase "unintended or nonstandard usage" likely refers to users who sign up for these products primarily to access cheap cloud storage, as these services offer more capacity for less cost than some of Microsoft's other storage offerings.

This interpretation gains credibility from the fact that Microsoft's announcement also mentions "higher operational costs associated with maintaining these plans." The company appears to be addressing a situation where customers were using these standalone services as cost-effective storage solutions rather than as part of integrated collaboration suites.

Microsoft emphasizes that its Microsoft 365 suites "remain the primary way customers access SharePoint and OneDrive capabilities." However, these suites are notably more expensive than the standalone plans being retired. The company is encouraging partners to steer customers toward Microsoft 365 Business or E3/E5 suites instead.

For affected customers and partners, there is no immediate urgency to act. Service for the standalone plans will continue until December 2029, providing ample time for transition. Sales will cease on May 31st, 2026, and Microsoft won't renew contracts for these services as of January 2027.

The company has advised partners to "proactively identify impacted customers, communicate key dates early, and guide customers toward the most appropriate Microsoft 365 suite or storage alternative to ensure continuity and a smooth experience."

This move aligns with Microsoft's broader strategy of bundling services into comprehensive suites rather than offering standalone products. It also reflects the company's efforts to optimize its product portfolio and reduce operational complexity. While the extended timeline provides breathing room for affected customers, the eventual transition will likely result in higher costs for those who have been using these standalone services as budget-friendly storage solutions.

The retirement of these standalone plans underscores Microsoft's push toward its Microsoft 365 ecosystem, where collaboration tools are integrated with productivity applications, security features, and AI capabilities. This strategy not only increases revenue per customer but also creates a more cohesive user experience across Microsoft's cloud services.

Partners will play a crucial role in this transition, as they'll need to help customers understand the implications of the change and identify the most suitable Microsoft 365 suite or alternative storage solution. The extended timeline suggests Microsoft is aware of the potential disruption and wants to ensure a smooth migration process for its customers.

For businesses currently using these standalone plans, the coming years will be critical for planning their cloud collaboration and storage strategy. While the immediate impact is minimal, organizations should begin evaluating their options and preparing for the eventual transition to ensure they can maintain their workflows and collaboration capabilities without interruption.