Microsoft 365 Family, Premium, and Pro tiers are moving from 1 TB of OneDrive storage per user, up to six users sharing 6 TB in total, to a single shared pool: 2 TB for Family and Premium, 5 TB for Pro, shared across up to six users. Fully shared Family and Premium accounts lose up to 4 TB; Pro accounts lose up to 1 TB, though the per-person cap disappears if pool space is available.
The change took effect for new subscribers on October 8, 2026, per Microsoft’s updated support page, which the company published this week. Existing subscribers keep their current allotments until renewal on or after May 2, 2027. Microsoft’s justification, per the support page: “The goal is to provide a more flexible experience.”
Reaction has been sharp. The Register reports users in the Microsoft365 subreddit are threatening to cancel or turn off auto-renewal, and Microsoft’s own support page includes steps for canceling the subscription, an unusual concession. It is the latest in a string of Microsoft storage retrenchments, following the end of “unlimited” Office 365 storage years ago and education storage cuts in 2024.
The economics are straightforward: consumer cloud storage is a cost center that grows with photo and video libraries, and Microsoft is choosing margin over generosity while the Copilot upsell does the revenue work.