This was a long pending move from Microsoft, and it’s finally here. The Redmond giant has bumped up the free storage space on its OneDrive cloud storage service to 15GB for everyone, while increasing the cloud storage space for Office 365 Home and Personal subscribers to a whopping 1TB.

Till today, OneDrive used to come with 7GB of free storage for all users and just 20GB for Office 365 subscribers. While doubling the deal for general users, Microsoft has tried to sweeten the deal for Office 365 users by increasing the free storage by 50 times.


With this new offer, Office 365 Home users, paying $9.99 per month, will get 1 TB per person for up to five people. Office 365 Personal subscribers, paying $6.99 a month, will get 1 TB per subscription, as will Office 365 University, who pay $79.99 for four years. The new offer is expected to go live by next month.

Microsoft has realised that people and businesses are now sharing far more digital content than before. Oman Shahine, the Group Program Manager at OneDrive writes in a blog post

The landscape is changing to the point that we believe it’s no longer enough to provide only cloud storage — that’s table stakes. We want to provide a complete experience that brings in the power of Office and lets you do more with everything you put in your OneDrive — whether it’s sharing your favorite photos with the people you care about in one simple click or working together in real time on an important project.

Clearly, Microsoft is competing with Google here. As a matter of fact, Google also provides 15GB of free storage across its services (Google+, Picasa, Gmail), but recently announced a major price cut, offering 1TB of cloud storage at just $9.99 per month. This is where Microsoft is using free cloud storage as a carrot to attract more customers to sign up for its Office 365 subscription plans. Meanwhile, Box offers 10GB and Dropbox 2GB free.

Microsoft also is offering users without Office 365 subscriptions monthly subscription storage options for reduced rates. Users can get 100GB of storage for $1.99 for 100 GB (previously available at $7.49 per month) and $3.99 for 200 GB (previously $11.49 per month).

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Raju is the founder-editor of Technology Personalized. A proud geek and an Internet freak, who is also a social networking enthusiast. You can follow him on Facebook and on Twitter. Mail Raju PP. Follow rajupp