Microsoft adds pay-as-you-go pricing for extra OneDrive storage

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Following a similar move with SharePoint, Microsoft 365 business customers can pay for additional OneDrive storage as users consume it, rather than purchasing extra capacity up front.
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Credit: Howard Wen / Foundry

Microsoft has added a “pay-as-you-go” option for OneDrive storage, providing an additional way for Microsoft 365 commercial customers to buy extra cloud storage capacity for users.

Previously, increasing storage capacity for OneDrive users meant purchasing capacity “packs” for individual accounts, available in 100GB, 500GB, and 1TB through 6TB sizes.

With the new consumption-based billing, Microsoft 365 admins can select which users’ accounts are eligible for additional capacity, with any usage above the licensed storage quota then automatically billed.  

The new billing option is currently in public preview for Microsoft 365 business customers, ahead of general availability starting November.

Pay-as-you-go billing is turned off by default: Admins can set it up via the Microsoft 365 admin center, with options to set budget limits and alerts. The existing overall 25TB per-user limit for OneDrive remains in place.

Additional OneDrive storage costs $0.20/GB/month. Microsoft does not publish the pricing for the OneDrive capacity “packs.”

The OneDrive update follows a similar move with SharePoint, with a public preview of pay-as-you-go pricing for extra storage starting June, ahead of wider availability for GCC, GCC High, and DoD customers in November.

Microsoft will host a OneDrive + Copilot digital event on Oct 20 with updates on AI features coming to the cloud storage application.

Cloud StorageMicrosoft 365Productivity SoftwareFile Sharing

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AndyC

Andy Curtis is an award-winning security consultant, researcher and public speaker. He has been working in the computer security industry since the early 1990s, having been employed by state and federal government, leading healthcare and banking providers across three continents. He has given talks about computer security for some of the world’s largest companies, worked with law enforcement agencies on investigations into hacking groups, and is a regular voice on TV and radio explaining IT security threats.

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