Sunday, October 4, 2026

New M365 SharePoint and OneDrive storage pricing models

A new Microsoft 365 SharePoint and OneDrive storage solution is now available in public preview. This solution uses a pay-as-you-go pricing model, which is very compelling.

Many customers have faced SharePoint storage challenges for years. Enterprise customers, in particular, have accumulated significant amounts of data over time. Customers have implemented many creative solutions, including policies for deleting old data. They also have access to Microsoft 365 Archive, which can archive large volumes of data at a much lower price point. Removing data that users no longer actively use is beneficial because very old data can also affect how Microsoft 365 Copilot generates responses.

Until now, customers have had to purchase additional SharePoint storage in fixed amounts ahead of time. As a result, they have had to estimate data growth and maintain a storage buffer. Otherwise, whenever they exceed their allotted SharePoint storage quota, tenant administrators receive repeated reminders to purchase more storage.

With this new Microsoft 365 SharePoint storage pay-as-you-go framework, administrators can connect their tenant to a Microsoft Azure subscription, monitor consumption, and create storage budgets and thresholds. You no longer have to purchase storage upfront; you simply pay for what you use and can create policies to maintain cost control.

This new Microsoft 365 SharePoint storage pay-as-you-go framework can be used alongside Microsoft 365 Archive. When both are used, you can achieve a more cost-effective blended rate across active and archived data.

Additionally, this new solution extends to OneDrive for Business data. Administrators can set limits on how much additional storage an individual user can have beyond their entitlement, allowing storage to grow while placing a cap on that growth.

I know many customers will use this solution to help optimize their data costs.

 


Reference: https://techcommunity.microsoft.com/blog/microsoft_365blog/now-in-public-preview-microsoft-365-sharepoint-storage-and-onedrive-storage/4559758


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