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Microsoft limits unlimited OneDrive for Business storage to priciest Office 365 enterprise plans

Gregg Keizer | Dec. 18, 2015
No surprise, says analyst, after the elimination of unlimited storage for consumers.

"If you allocate unlimited storage, you have to hold it available," said Directions' Miller. "You can promise unlimited, but when everyone uploads terabytes, the walls would explode."

Miller said that Microsoft "learned a lot over the last year about how people stored stuff," then decided it had to gate, or cap, the storage allowances.

He also characterized the limitations as, if not business as usual, not extraordinary either. "When they announce a feature on a roadmap, the inclination is to see it as everyone gets it," said Miller, who cited the new Planner app. But it's not unusual for Microsoft to later restrict a feature or app, including one for Office 365 customers, to a subset of customers as it nears an actual release, he argued. "This 'packaging' is the last thing we hear about," Miller said.

Planner, for instance, will not be available to consumer-grade Office 365 plans, nor the $8.25 per user per month ($99 annually) Office 365 Business plan.

Talking again of the OneDrive for Business allowances, Miller also contended that the E3 plan is a better deal for most companies than Business Essentials. The latter will have a 1TB maximum, the former will not. E3 offers significantly more features than does Business Essentials, but it's $7.50 more per user per month (or $90 more per user annually).

Naturally, Microsoft would love if Business Essentials users upgraded to E3 to get, among other things, more OneDrive space, as the company would see a 60% revenue jump from those customers.

Microsoft has made other moves recently to boost revenue from Office, including a 59% price increase in the top-tier enterprise-grade plan.

Office 365 roadmap
Microsoft hasn't gotten around to changing the Office 365 roadmap, which continues to promise unlimited OneDrive and OneDrive for Business storage space. Click on image to enlarge.


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