Microsoft 365 Family: How is reducing 6 TB to 2 TB an improvement?

Ákos Hajdu 5 Reputation points
2026-10-08T20:59:07.63+00:00

Microsoft is replacing six individual 1 TB OneDrive allowances with just 2 TB shared across all six users.
That's a 66.7% reduction in total included storage, presented as greater flexibility for families.

I've been paying for Microsoft 365 Family for years, and I find this decision completely unacceptable. Individual storage allowances were one of the main reasons I subscribed.

Why should existing customers accept such a significant reduction in benefits? Will Microsoft reduce the subscription price accordingly?

If this change goes ahead without adequate compensation or equivalent storage, I will seriously consider cancelling my subscription.

Microsoft 365 and Office | Subscription, account, billing | For home | Other

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  1. VB 0 Reputation points
    2026-10-16T05:05:06.7733333+00:00

    I honestly feel that this is a bad move. If you have a family that is sufficiently using their storage then 2 TB is a really huge reduction. I am seriously evaluating if I should continue sticking to O365 or move to Google or Box or other providers.

    O365 had pricing structure which gave them huge advantage and boost and now if you keep it more competitive to other providers then you are giving options to your current and future customers to seriously consider them as well specially given the price range. Not sure who came up with this idea but it is a dumb move overall.

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  2. Bulldog 5,035 Reputation points
    2026-10-08T23:31:35.77+00:00

    Microsoft provided a reason for instituting this change, but if you're like me, you won't find it very satisfying. In Changes to Microsoft 365 storage Microsoft says that sharing storage among all users means that a user otherwise running out of space in their OneDrive can benefit from a user on the same Family or Premium plan who is not using anywhere close to their allocation. That's not totally unreasonable, but it still doesn't explain the decrease from 6TB to 2TB.

    As to your second question, Microsoft writes "For existing Microsoft 365 Family and Premium subscribers, this change generally takes effect after the first subscription renewal on or after May 2, 2027 ..." so for now nothing changes.

    If you want my personal opinion - which I actually don't recall you asking about - I always thought that 1TB per user was a ridiculous amount of space to give away for free, particularly when other storage providers make good money on selling that amount of storage. I think that may be closer to real answer here.

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