Inquiry on October 2026 OneDrive Policy: M365 E3/E5 Transition and 25TB Storage Retention

Question

Inquiry on October 2026 OneDrive Policy: M365 E3/E5 Transition and 25TB Storage Retention

no 5 0

Dear Microsoft Support Team / Account Manager

Currently, our organization is utilizing SharePoint Plan 2, purchased directly from Microsoft with timely renewals, and we have maintained full compliance with all terms of service. Previously, each user was assigned a 25TB OneDrive storage quota via Microsoft Customer Support. However, on October 7, 2026, all OneDrive accounts in our organization displayed the message: "Your organization's storage space is full, and your OneDrive is currently read-only."

I reached out to our Microsoft Account Manager, who informed me that the current maximum individual OneDrive storage capacity is capped at 5TB per user, and under active policies, expanding storage to 25TB is no longer supported. Over the past few days, we have reviewed related community discussions and legacy documentation, where Microsoft advises affected organizations to transition to Microsoft 365 E3 or E5 licenses.

Could you please clarify the updated rules effective October 2026, as previous policies may no longer apply?

Specifically, we need clarification on the following:

Storage Retention & Quotas: If our organization subscribes to Microsoft 365 E3 or E5 starting in November 2026, will the existing 25TB OneDrive storage quotas for our current users be preserved under the new licenses (we currently have 3 accounts with storage usage exceeding 20TB)? Will there be any changes to storage allocations, and is it still possible to submit manual requests for incremental quota increases (e.g., if 25TB is no longer available, can storage be expanded to 10TB or 15TB)?

Link Continuity: Will file-sharing links generated during our SharePoint Plan 2 subscription continue to function normally after transitioning to Microsoft 365 E3 or E5?

Thank you very much for your time, assistance, and guidance on this critical issue. We look forward to your prompt response and help resolving this matter.

Best regards.

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Answer 1

Hi No 5,

Under the current OneDrive storage policy, the standard maximum storage is 5TB per user, and any allocation beyond this limit requires a separate review by Microsoft.

Storage retention and quotas

Firstly, please note that the existing 25TB quotas will not be carried over automatically when your organization moves to Microsoft 365 E3 or E5. Therefore, once the new licenses are assigned, a new storage request will be required for the 3 accounts currently using more than 20TB. In addition, your organization is still able to request storage above 5TB, such as 10TB or 15TB. However, each request is reviewed case by case, based on license eligibility and the actual usage of each account.

Sharing link continuity

Regarding your second question, the file sharing links created under SharePoint Plan 2 will continue to work normally after the transition, provided that the files remain in the same location. Furthermore, we recommend assigning the new E3 or E5 licenses before removing SharePoint Plan 2. In this way, no account will be left unlicensed, and your users’ files and links will remain fully accessible throughout the transition.

For your information that you can concern: OneDrive for Business Plan 2 is being retired: what "unlimited" actually was, and what to move wher…

This is a non-Microsoft website. The page appears to be providing accurate, safe information. Watch out for ads on the site that may advertise products frequently classified as a PUP (Potentially Unwanted Products). Thoroughly research any product advertised on the site before you decide to download and install it.

I hope this information helps clarify your organization’s storage and licensing transition. Should you have any further questions, please do not hesitate to let me know, as I will be happy to assist you further.

Thank you again for your time and for bringing attention to this important usability concern.