Microsoft cuts M365 Family cloud storage to 2TB shared pool
Microsoft reduces OneDrive storage for Family and Premium plans from 6TB to a shared 2TB, sparking customer backlash and renewal concerns.
Key points
- Microsoft 365 Family and Premium plans now offer 2TB of shared storage instead of 1TB per user.
- Existing customers retain current allocations until renewals on or after May 2, 2027.
- The change reduces total capacity for six-user households from 6TB to 2TB.
Microsoft has restructured the cloud storage allocation for its Microsoft 365 Family and Premium subscriptions, replacing individual user quotas with a single shared pool. According to a new support document cited by TechRadar, the total available storage for these plans has been reduced from a potential 6TB to a fixed 2TB.
The previous model allocated 1TB of OneDrive storage to each of the six allowed family members, resulting in a possible total of 6TB. Under the new structure, the primary subscriber and up to five additional members draw from the same 2TB shared storage pool. This adjustment applies to new subscribers immediately.
Context and background
Microsoft states that this approach provides greater flexibility by making storage available to the people who need it most. The company argues that a shared pool allows primary users to access more than 1TB if other members are not using their full allocations. TechRadar notes that while this benefits households with few active users, it significantly reduces capacity for families with multiple heavy users.
Previously, a full complement of six users could utilize 6TB of total storage. Now, those same six users must share 2TB, equating to approximately 330GB per person on average. This represents a reduction to roughly one-third of the previous per-user capacity in maximum-usage scenarios. The change affects both the Microsoft 365 Family and Microsoft 365 Premium plans.
Who is affected
Existing customers are not immediately impacted. According to the support document, current subscribers retain their previous storage allocations until their next plan renewal occurs on or after May 2, 2027. The impact on multi-year deals remains unclear. New subscribers signing up for Family or Premium plans will receive the 2TB shared pool from the start.
Users seeking more storage can upgrade to the Microsoft 365 Pro plan, which offers 5TB of storage. However, this plan costs $99 per month, which is over seven times the price of the Family subscription. TechRadar reports that some customers suggest a rebellion could be underway, with many considering canceling auto-renewal due to the reduced value.
What should you do?
Affected users should review their current OneDrive usage to determine if the new shared limit will impact their workflow. Existing subscribers should note the May 2, 2027 deadline for changes to take effect. Those with high storage needs may need to evaluate alternative plans or manage their data more aggressively.
What to do and how to stay safe: Microsoft
- Review current OneDrive storage usage across all family member accounts to assess potential shortfalls under the new 2TB shared limit.
- Check subscription renewal dates to confirm if the change applies before May 2, 2027, and adjust auto-renewal settings if necessary.
- Evaluate if upgrading to a higher-tier plan like Microsoft 365 Pro is cost-effective for households requiring more than 2TB of total storage.
- Archive or delete unnecessary files from OneDrive to free up space within the shared pool before the transition takes effect.
Step-by-step guide: Cloud Misconfiguration Response: Containment, Recovery and Prevention Steps
General security guidance from the Threat Times newsroom. It is not confirmed advice from the organisations named in this story.
Frequently asked questions
When does the new 2TB storage limit start for existing customers?
Existing customers keep their current storage until their next plan renewal on or after May 2, 2027.
How much storage does each user get in a full six-person family plan now?
The six users share a total of 2TB, which averages to about 330GB per person.
Is there a cheaper plan with more storage than the new Family plan?
No, the cheaper Family plan now has less storage; the Pro plan offers 5TB but costs $99/month.
