Microsoft Declares Cloud Warfare, Bumps OneDrive Storage to 15GB and 1TB for Office 365

Paul Lilly

Big price reductions accompany increases in cloud storage capacity

Microsoft is doing its present and future customers a solid by offering more OneDrive storage space for less money. We're not talking about small increases simply to make headlines, either -- Microsoft today announced that OneDrive will come with 15GB for free, up from 7GB, while all versions of Office 365 will come with 1TB of OneDrive storage . That sound you just heard was the gauntlet being dropped on the competition.

According to Microsoft, three out of four people have less than 15GB of files stored on their PC. Combined with what people have stored on other devices, Microsoft made the decision to more than double up on free storage out of the gate with no hoops to jump through.

If you're an Office 365 Home subscriber, your $9.99/month plan will soon get you 1TB of storage per person (up to five people), while Office 365 Personal ($6.99/month) and University ($79.99/4 years) both qualify for 1TB per subscription.

"Of course, we also want to give you as much flexibility as possible, so if you need more storage, but don’t need an Office 365 subscription, we will also still provide monthly subscription storage options – at dramatically reduced rates," Microsoft announced in a blog post .

That's not lip service -- Microsoft dropped storage prices by over 70 percent. You can score 100GB for $1.99/month, down from $7.49, and 200GB for $3.99, down from $11.49 previously.

All of these changes take effect next month.

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