Microsoft cuts OneDrive prices by 70%; 15GB free for everyone, 1TB with Office 365

Microsoft's OneDrive has become a lot more attractive today as the company has announced that it is lowering the cost for additional storage and increasing the amount of free storage too. Prices are being cut by 70%, making storage ridiculously cheap if you are in the need for cloud storage.

The new monthly prices will be $1.99 for 100 GB (previously $7.49), and $3.99 for 200 GB (previously $11.49) and there is more good news if you are an Office 365 subscriber.

If you subscribe to Microsoft's subscription-based Office service, you will now get 1TB of storage included. This applies to all of the consumer SKUs starting with Office 365 Personal for $6.99 a month, and adds extraordinary value to that package. For that price, you would get 1TB of storage and Office, compared with $9.99 a month for 1TB of storage on Google Drive, while Dropbox charges the same price for just 100GB of storage. 

For those of you who are still content with your free space, Microsoft is tossing good news your way too. Starting today, all accounts now have 15 GB of free storage; this is double the previous free amount which was 7 GB, and matches Google Drive's 15GB of free space.

These dramatic price cuts highlight that cloud storage prices are in a race to the bottom. The fact that Microsoft will cut prices by 70% shows that storage is cheap and at this point, cloud providers want users, and are willing to do whatever it takes to bring them in, even if that means cutting revenues.

It makes sense too - while there are not any published statistics about the rate at which users switch platforms, we would lean towards the opinion that once you chose a cloud provider for storage, you are highly unlikely to switch. So, for Microsoft (and others), it's critical to get users to adopt their platform first and worry about monetization second. 

For Windows users, besides the additional free space, the added benefit of OneDrive is that it comes baked-in with Windows 8. Microsoft has made it available out of the box and when you tie it all in with your Microsoft account, setting up a new PC takes only a few seconds.

Source: Microsoft

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This is the Microsoft I like.

Hope I can convince more Dropbox and Google Drive users that OneDrive is even more worth it. My workplace was a bit iffy on OneDrive (as most are Google users, and Dropbox users) and Google's free 15GB was a major future-proofing thing. We're using a mix right now, but we'll see.

Quikboy said,
This is the Microsoft I like.

Hope I can convince more Dropbox and Google Drive users that OneDrive is even more worth it. My workplace was a bit iffy on OneDrive (as most are Google users, and Dropbox users) and Google's free 15GB was a major future-proofing thing. We're using a mix right now, but we'll see.

Your workplace is using a mixture of free consumer cloud storage solutions? That's really poor. Sort that out.

Our workplace is part of a larger institution and of course we have access to Exchange, Windows users accounts, shared drives, etc. Our office has 4-5 employees, including part-time students where they have their own personal laptops they can use for work. Of course they're not connected by domain.

It's just personal preferences. Some people don't like using one or the other. We have choices. I did originally try to create a centralized OneDrive but it saw little use with people still preferring their own solution.

Don't see anything yet, but I already have 70GB which I only use about 10GB of, so no worries there.

What I'm looking forward to much more is the co-ownership option for folders.
I want my girlfriend to be able to add pics to my OneDrive folders from her Tablet/pc

Does anybody have any info about this?

One thing I don't like about onedrive is the inability to share a file without displaying your account name. How stupid...

I still have only 10Gb :( (7Gb +3Gb bonus for auto-upload photos on my phone)

How do I get the extra storage? Can't see any info about it on my onedrive account.

...I guess this is just Neowin being quick with the news and I just have to wait! Patiently! :|

Edited by james.faction, Jun 23 2014, 10:47pm :

I have 53 GB of skydrive, all Enthusiast bonuses and student office 365

I am only using 2GB of that, and half of it's a public wallpaper folder I have set up to sync images across my computers/surface

$2 a month for office and 1TB of storage for four years?
I think yes

WOW! 1.99 for 100GB? From 500 GB to 1TB on my Office 365???? yayyyy!! I was recently just worrying that I'm gonna run out of space soon with the amount of RAW photos I upload from Lightroom. Now THIS is competitive pricing.

ashpowell said,
Does anyone else find OneDrive slow?

A little but mostly sync issues, mainly on my Surface Pro. Happened in my SP2 and now SP3.

j2006 said,
WOW! 1.99 for 100GB? From 500 GB to 1TB on my Office 365???? yayyyy!! I was recently just worrying that I'm gonna run out of space soon with the amount of RAW photos I upload from Lightroom. Now THIS is competitive pricing.

I'm in the exact same situation. I have a little over 500gb of OneDrive space right now, but most of it is just good for a year or two. I use a lot of space for RAW files. It'll be nice to know that I have a TB that I can always count on having because I am an O365 subscriber.

Still showing the old storage: 30GB (7GB base storage + 3GB for camera roll + 20GB for Windows Phone for a year).

I was gonna go with google, but now that microsoft has lowered the price and the changes to the privacy policy I will go with them.

The press release I read said this will be happening "in the next month". So if you don't get your storage bump soon, keep that in mind and give it a little time.

I had been holding off getting a personal office 365 license assuming that my company will eventually convert to office 365, this change though will likely get me to switch by itself, that's a heck of a deal IMO.

I've complained in the past that I don't like that I cannot easily use Dropbox or 3rd party online storage with Office for the iPad. This kinda makes that irrelevant. I'd say my only gripe now is that it isn't easy to use it with my QNAP NAS... but that isn't a big deal for me..

Well done MS..

Not likely... iCloud Drive only offers 5GB of storage "Free" (less than Windows 8 users got already). Now Windows 8 users get three times the amount of free cloud storage as Apple users.

Yea, but lets see you guys start sending large files through email now.

But anyways, it's not like we need anything to store. We have all the space we need on our Macs, besides the fact that we can take our belongings anywhere.

It's a response to Google Drive increasing the free storage to 15GB.

SkyDrive used to offer 25GB at first, then they dropped it to 7GB when Google had 5GB.

Mr.XXIV said,
Yea, but lets see you guys start sending large files through email now.

But anyways, it's not like we need anything to store. We have all the space we need on our Macs, besides the fact that we can take our belongings anywhere.

Huh, what are you on about? Is this one of those typical 'Mac users are supreme species with an over inflated ego' thingies? I blame the 90s Mac vs PC ads.

Mr.XXIV said,
You don't wanna hear me go into that mode. This isn't my "supreme species" voice.
Yeah you're right, I can detect hints of jealousy, butthurtness and whining. :D

Windows can already send large files through email via OneDrive without much effort. And I can carry my Surface Pro 3 around with me in a package that is thinner and lighter than a MacBook Air, so... yeah. Apple has a lot of catching up to do here :-)

If I stopped using something because of a companies, or employees, shady practices....I wouldnt ever use another tech product again. I have a Dropbox, Google Drive, and Sky Drive account that I use for different purposes.

techbeck said,
If I stopped using something because of a companies, or employees, shady practices....I wouldnt ever use another tech product again. I have a Dropbox, Google Drive, and Sky Drive account that I use for different purposes.

which one do you use for you porn? lol

don't think they can, they rely on Amazon storage and i don't think a price reduction will happen until amazon lower their prices. which is a shame as i do like dropbox.

I currently have a 147GB OneDrive but will lose 120GBs once two promos end next year. 25GB carried over from SkyDrive + 3GB via Camera roll could do with an extra 15GB free.

Wow... another round of pricedrops from Microsoft.

Who wants to bet that Dropbox still won't drop their prices? They didn't in the last round.... they're holding firm.

I have accounts with all the cloud storage companies.... but I primarily use Dropbox because everybody else has it. It makes sharing files very easy if everyone is on the same platform.

I need more Dropbox space... but not 100GB for $100 a year.

I wouldn't care if Dropbox kept the same pricing rate but offered a lower storage tier.

Maybe $50 a year for 50GB ?

xendrome said,
Man dropbox really needs to get with it....

That's if they can, this storage isn't cheap for them and I doubt they can keep up with the big companies like MS and Google when they're dropping prices like this.

George P said,

That's if they can, this storage isn't cheap for them and I doubt they can keep up with the big companies like MS and Google when they're dropping prices like this.

Dropbox lease their space from Amazon's cloud infrastructure. Amazon's cloud infrastructure is arguably the best in the world which is why upload & download performance is so good compared to OneDrive/Google Drive.

OneDrive is slow as hell.

NastySasquatch said,

Hmm I have 110 Free gigs atm... I wonder if I will get my 8?

Whatever, dude. It is all about the girth anyway. :)

NastySasquatch said,

FYI, Bing Rewards gives you 100 Gigs for free for basically signing up.

Bing Rewards is available outside the US, though...

-adrian- said,
Does my 7gb account have 15gb now or is it just for new sign ups? wouldn't mind adding this to my 25gb as well :)

Your 7GB account will soon have 15GB.

You can switch accounts on the fly, take a look, and switch back. You're not locked into the account you signed into windows with... you can look at anything on the web.

-adrian- said,
You cant use two instances of the same account online at once

You can if you use InPrivate browsing and normal browsing, or different web browsers.

You can easily switch between two accounts on the website. I do it all the time. Just go to the site, log out, log back in with your other credentials, look, log out, and then log back in with your usual credentials. It's not tough. I don't even need to use any tricks like InPrivate browsing. You're not doing things SIMULTANEOUSLY, you're just checking your other account.

pmbAustin said,
You can easily switch between two accounts on the website. I do it all the time. Just go to the site, log out, log back in with your other credentials, look, log out, and then log back in with your usual credentials. It's not tough. I don't even need to use any tricks like InPrivate browsing. You're not doing things SIMULTANEOUSLY, you're just checking your other account.

Indeed. I just used the 'referral' link on one of the OneDrive admin pages to give my two accounts an additional 500MB each. All on the same computer.