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Got a Microsoft 365 Subscription? Your Storage Is About to Shrink

Family and Premium plans will shift to shared storage and AI credits, while subscribers using more than 2 TB could face higher costs.

  • Microsoft updated its 365 Family and Premium subscriptions to implement a shared 2 TB OneDrive storage pool and combined AI usage credits for members, replacing the previous 6 TB total allowance.
  • Aligning with competitors like Google One, the company claims this approach offers 'flexibility' by pooling resources and making storage available where needed most.
  • The reduction from 6 TB to 2 TB effectively forces some subscribers to pay for additional storage or cut data usage, creating cloud shrinkflation that could double or triple bills for heavy users.
  • New and upgraded subscriptions include shared storage starting yesterday, while existing customers transition to the new limits upon their first plan renewal on or after May 2, 2027.
  • Online commentary reflects significant frustration, with some users on Reddit labeling the move 'weasel-speak' and 'greed,' while others warn the decision may trigger cancellations of auto-renewing subscriptions.
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Microsoft 365, the online subscription for services such as Teams, Word and OneDrive, has become much more expensive. Now, the company is putting an end to it – supposedly to help families. Our author says: "That's enough now."

·Hamburg, Germany
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Microsoft reduces OneDrive's storage in the Family plan from 6 TB to 2 shared TB. Understand changes and know alternatives.

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ZDNet broke the news in New York, United States on Thursday, October 8, 2026.
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