Microsoft updates subscription plans

Microsoft is changing its Microsoft 365 subscription plans, introducing shared quotas for AI credits and OneDrive storage. The changes are set to be rolled out "in the coming months" and are described by the company as providing "more flexibility" for users regarding AI and cloud storage benefits.

Shared storage reduces total capacity

Currently, Microsoft 365 Family, Premium, or Pro subscribers each have a fixed OneDrive storage quota of 1 TB. For families using all five available shared locations, the total storage was 6 TB. Under the new plan, the subscriptions will have a shared storage pool for the entire subscription, but each family member's files will remain private. The total storage for Family and Premium subscriptions will be reduced to 2 TB.

Higher costs for heavy users

Microsoft 365 Pro, a newer offering launched in September, includes 5 TB of shared storage and the highest AI usage limits but costs 110 euros per month. For Family and Premium subscribers who use more than 2 TB of total storage, this change could significantly increase their costs. Each additional TB of OneDrive storage adds 10 euros per month to the subscription price, which could lead to bills doubling or tripling for some users.

AI credits will be shared

The changes to AI-related benefits are expected to be less impactful for most users. Currently, Copilot usage credits are only available to the subscription holder. After the update, family members will be able to share AI credits, and the subscription holder can manage AI access for younger family members. Premium and Pro subscribers will also have the option to purchase additional AI usage credits.

Implementation timeline

According to a Microsoft spokesperson, the new shared storage system will be available starting October 8, 2026, for new subscriptions and those upgraded. Existing customers will transition to shared storage during their first renewal starting May 2, 2027, and will be notified in advance of the change.

Reasons for the change

The move is likely aimed at preventing users from exploiting the 6 TB of storage included in Family subscriptions to create personal data reserves using a second free Microsoft account. This is not the first time Microsoft has reduced cloud storage quotas for OneDrive users, as the company previously offered "unlimited" storage in 2014 before retracting the offer a year later.

Competition and alignment

The shift to shared storage and AI usage aligns with strategies used by Microsoft's main competitors. Google One, for example, offers 2 TB of shared storage for six people, along with AI credits, for about 100 euros per year. Apple also offers shared storage through iCloud+ and Apple One packages, which bundle other subscription services.

Most users will not notice change

For the majority of Microsoft 365 subscribers, the change will likely go unnoticed. Most "Family" package users are expected to use less than the 2 TB allocated. However, a significant number of users, including many of Microsoft's most loyal customers, may exceed the new limits and are expected to express dissatisfaction with the change.