OneDrive Increases Free Storage and Office 365 Gets 1TB Free

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.

OneDrive 1TB with Office
OneDrive 1TB with Office

Free Storage

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.

Office 365 Consumer Plans
Office 365 Consumer Plans

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)

OneDrive for Business Now Offers 1TB per User

OneDrive For Business
OneDrive For Business

On April 28, Microsoft announced some updates to OneDrive for Business, the service formerly known as SkyDrive Pro. According to the blog post on Office Blogs:

 

First, we will be increasing OneDrive for Business storage from 25GB to 1TB per user.

Second, all Office 365 ProPlus customers will get 1TB of OneDrive for Business storage per user as part of their Office 365 ProPlus subscription.

Third, we’ll help organizations migrate data from their existing solutions to OneDrive for Business

The first update is huge. Not too long ago, SkyDrive Pro was providing only 7GB per user. When Microsoft announced the standalone OneDrive for Business offering, they also bumped up the default storage to 25GB per user. Now perhaps based on pressure from competitors like Google, they have made the default to 1TB. As always when there is competition, we as customers ultimately win.

Office 365 ProPlus is a service that provides always-up-to-date Office software to customers on a subscription basis. Until today’s announcement, it was purely an Office subscription. Now, it also comes with a truckload of storage space and more importantly, a sync solution that ensures that files are always in sync across devices.

The third item was not detailed but I suspect Microsoft will have some utilities to help migrate data from Google Drive, Dropbox, Box and others to OneDrive for Business. We shall see.

The blog post goes on to describe the benefits OneDrive for Business offers in addition to pure storage amount and sync:

Native integration with Office documents: Enables people to discover content and collaborate with others in real time with efficient synchronization of changes and real-time co-authoring using Office Online.

Connected to what you need, when you need it: As cloud services like Office 365 get smarter and more personalized with Office Graph, OneDrive for Business becomes part of a connected productivity solution where content is discoverable, sharable and personalized for individual users, helping to increase personal and organizational responsiveness.

A trusted service: OneDrive for Business provides enterprise content management, compliance and admin controls, financially backed by the industry-leading Office 365 Service Level Agreement. We’ve made investments in manageability, security, auditing and information protection including rights management, data loss prevention, auditing, eDiscovery, legal holds, etc. and more that can work for OneDrive for business but also across SharePoint and Exchange.

Deep investment in certifications and infrastructure: We’ve invested heavily already in areas that are important for doing business in major vertical industries and geographies, such as FISMA, the EU Model Clauses, CJIS and more, many of which are detailed on our Trust Center.  Microsoft has industry-leading, cloud reliability and security and has made a massive investment in physical datacenters around the world, enabling us to deliver high availability and robust disaster recovery capabilities.

Scale through partners: Our 400,000 partners around the world can help customers get up and running quickly with OneDrive for Business as a standalone solution or with Office 365.

As you can see, OneDrive for Business is not a “dumb storage” service but it is in fact the center of a collaborative solution that is protected by certifications and service level agreements. Along with the huge partner network, which enables building innovative solutions on top of the storage layer, OneDrive for Business is now a serious contender for businesses of any size to move their data into the cloud.