Microsoft 365 Family plan slashes cloud storage from 6TB to 2TB

Microsoft has altered the cloud storage functionality for its Microsoft 365 Family and Premium plans. Previously, these plans allowed a maximum of 6TB of storage, with each of the six family members getting 1TB. Now, the total storage has been reduced to 2TB, which is shared among all users. This change has left many families unhappy.

Microsoft explains that with the new setup, the primary subscriber and up to five additional members share the same pool of 2TB of storage. Formerly, each family member had their own 1TB allocation, totaling 6TB for a full complement of six users. However, the new arrangement results in each member receiving around 330GB of storage, a third of what they were previously allocated.

This alteration applies to new Microsoft 365 Family and Premium subscribers moving forward, but existing customers will experience it when their next subscription renewal occurs after or on May 2, 2027. Microsoft claims that this flexible approach provides greater storage availability for users who need it most. While this might be true in certain situations, such as when only the primary subscriber is using the cloud storage extensively, the issue arises when multiple family members are frequently using it.

In such cases, existing subscribers might need to reduce their storage consumption or pay for additional cloud storage. Microsoft's decision has been met with negative reactions, with many perceiving it as a bait-and-switch tactic. Some users express disappointment, while others criticize Microsoft's greed and potential future actions, such as reducing the storage limit for the Microsoft 365 Personal plan.