Microsoft to cut OneDrive storage for shared Microsoft 365 family plans

Microsoft is preparing to implement a significant reduction in cloud storage allowances for users on shared Microsoft 365 family plans. According to a report by ZDNET Security, the tech giant is moving to shrink the 1 TB of OneDrive storage that is currently provided to every individual member of these shared accounts.

The announcement marks a departure from the current generous storage model that has defined the Microsoft 365 family tier for some time. Under the existing structure, when a primary account holder purchases a Microsoft 365 family subscription, they can invite up to five additional people to share the benefits. Each of these six total members has historically received their own dedicated 1 TB of OneDrive cloud storage. This arrangement allowed families and small teams to maintain substantial personal cloud archives without overlapping into a single shared bucket.

Context and Background

The shift represents a tightening of resources within Microsoft’s consumer subscription offerings. The Microsoft 365 ecosystem has long positioned its family plan as a value proposition, bundling productivity apps like Word, Excel, and PowerPoint with substantial cloud storage. The 1 TB per-user metric was a key differentiator against competitors and a major selling point for households managing large volumes of photos, documents, and media files.

ZDNET Security highlights that the upcoming change will "dramatically" shrink this allotment. While the specific new storage limit is not detailed in the initial reporting, the reduction indicates a strategic move by Microsoft to either lower costs associated with cloud infrastructure or to push users toward higher-tier individual plans or additional storage purchases. Cloud storage costs are a significant operational expense for tech giants, and adjusting the balance between free inclusion and paid upgrades is a common industry practice.

Who Is Affected

This change directly impacts anyone currently holding a Microsoft 365 family subscription or considering one. The primary account holder and all invited members—spouses, children, or other relatives—are subject to this policy update. Users who rely on the 1 TB per-person allowance to back up local drives, store high-resolution media libraries, or archive work-related documents will need to assess their current usage levels.

Individuals who have already maximized their current 1 TB allocation may face immediate pressure to delete files or upgrade their storage options once the new limits take effect. For large families that have fully utilized the 6 TB total capacity (1 TB x 6 users), the reduction could result in a significant net loss of available cloud space.

What should you do?

Users should monitor official communications from Microsoft for specific dates regarding when the new storage limits will be enforced. In the interim, it is advisable to review current OneDrive usage statistics for all family members. Identifying large, unnecessary files or duplicates can help free up space before the reduction takes place.

If the new limits prove insufficient for household needs, users may need to consider purchasing additional OneDrive storage separately or evaluating whether individual Microsoft 365 personal subscriptions offer a better fit for their specific storage requirements. No official patch or workaround exists to retain the old storage limits; the change is a policy update rather than a software bug.

What to do and how to stay safe: Microsoft

• Urgency and secrecy are the primary psychological triggers used to bypass rational decision-making processes.
• Technical indicators like spoofed addresses are often invisible without specific tooling, so behavioral context matters more.
• Verification must occur through a pre-established out-of-band channel, not the one currently in use.

Trust but verify is the only reliable defense against social engineering. Always confirm urgent requests through a separate, pre-established communication channel.

Step-by-step guide: Social Engineering Warning Signs and How to Respond

General security guidance from the Threat Times newsroom. It is not confirmed advice from the organisations named in this story.

Frequently asked questions

How much storage do I currently have with a Microsoft 365 family plan?

Currently, each member of a shared Microsoft 365 family plan receives 1 TB of OneDrive cloud storage.

Is Microsoft removing OneDrive storage entirely?

No, Microsoft is not removing storage entirely but is planning to significantly shrink the current 1 TB allotment per user.

Will this affect individual Microsoft 365 personal plans?

The report from ZDNET Security specifically cites changes to shared Microsoft 365 plans; it does not mention changes to individual personal subscriptions.