Microsoft adds pay-as-you-go pricing for extra OneDrive storage
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 has introduced a new "pay-as-you-go" pricing option for extra OneDrive storage, offering Microsoft 365 commercial customers a flexible way to purchase additional cloud storage for their users. Previously, expanding storage capacity required buying predefined packs, ranging from 100GB to 1TB in increments up to 6TB. With this new consumption-based billing, Microsoft 365 administrators can choose which user accounts are eligible for extra storage, and any usage exceeding the licensed quota will be automatically charged.
The feature is currently in public preview for Microsoft 365 business customers, with general availability slated for November. Pay-as-you-go billing is disabled by default, but administrators can enable it through the Microsoft 365 admin center, setting budget limits and alerts as needed. The existing per-user limit of 25TB for OneDrive remains unchanged.
Additional storage costs $0.20 per GB per month, but Microsoft does not disclose the pricing for the capacity "packs." This update follows a similar change with SharePoint, where pay-as-you-go pricing for extra storage went into public preview in June, with broader availability for certain customers in November. Microsoft will host a OneDrive + Copilot digital event on October 20 to provide updates on AI features for the cloud storage application.
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