On June 23, Microsoft announced several updates related to its OneDrive consumer-oriented online storage service including bumping up the free storage tier, reducing costs for purchasing storage dramatically, and adding 1TB to Office 365′s non-business plans.
While OneDrive (then called SkyDrive) offered 25GB free long time ago, Microsoft changed the free tierto be a then reasonable 7GB around the time of Windows 8 launch. The reasoning then was 7GB was higher than the competition at the time. Of course, as cost of storage has gone down, and as cloud services become more essential for ecosystems, Google and even Apple, have announced very inexpensive plans for their respective online storage services. Now, Microsoft matches some of the recent competitive updates by making the free tier to be 15GB.
Office 365 Personal, Home and University plans join the 1TB party
Microsoft had already announced that Office 365′s business editions would be getting 1TB of included storage (although that would be under OneDrive for Business, which is not the same product as OneDrive). With this announcement, Office 365′s non-business editions, which is Personal, Home and University, also get 1TB of included storage.
This makes Office 365 a pretty fantastic deal if you have the need for desktop Office, or if you want to be able to edit Office documents on the iPad. Not only does Office 365 now come with 1TB of storage, it always included 60 minutes of free Skype worldwide calling and of course desktop version of the Office suite, as well as edit rights for iPad version of the Office apps. If you have more than one person who needs Office, then Office 365 Home is a killer deal @ $99 per year for 5 users.
Reduced prices for additional storage options
Of course, as storage costs have gone down, each of the online storage providers have kept cutting their prices. OneDrive will no longer have the 50GB option since the $100GB option is now at $1.99 per month, down from $7.49 per month. An additional 200GB will be $3.99 per month, down from $11.49 per month.
These are great updates to an already useful storage service. As a reminder, OneDrive has a presence on all platforms, making it a truly universal online storage service: Windows 7, Windows 8.x, Windows Phone, iPhone, iPad, Android, Mac OS. The price changes were not completely unexpected because it is much easier for a larger company with scale, to keep lowering costs to meet the competition’s prices. I wonder what this means to the likes of Dropbox and Box, especially the former, since it has long been the darling of consumers for being so easy to use, sync and share. With OneDrive (and Google Drive and soon, iCloud) being so front-and-center in those various ecosystems, it will be interesting to see how many consumers will decide to switch away from the smaller companies. We shall see.
Edit: An earlier version of this article stated that OneDrive is perhaps the only service with apps across all platforms. Dropbox and Box also have apps across all platforms. Author meant to say, only one among the big ecosystem providers, but the sentence has been modified to refer to OneDrive by itself.
(Images courtesy OneDrive blog and Office Blogs)