Microsoft launches pay-as-you-go SharePoint and OneDrive storage

Microsoft has released Microsoft 365 SharePoint Storage and Microsoft 365 OneDrive Storage into public preview, offering commercial customers a pay-as-you-go model for expanding storage beyond the limits included in their existing subscriptions.

The services are aimed at IT administrators who need to respond to growing storage demand without committing to fixed additional licences or disrupting end users. Rather than purchasing a higher-tier subscription, organisations can link excess storage consumption to a Microsoft Azure subscription, monitor usage, and set cost budgets and alerts.

For OneDrive, administrators can set a per-user storage cap above the licensed entitlement. Microsoft gave the example of an F3 SKU, which includes 2GB by default - an admin can cap a user at 20GB, with only the storage consumed above the 2GB entitlement billed, up to that ceiling.

Microsoft said the services can be combined with Microsoft 365 Archive, its long-term compliant storage offering for inactive SharePoint content, which it prices at up to 75% less than standard active storage at list price. Where a tenant's above-quota storage spans both active and archived content, billing is calculated at a blended rate across the two tiers.

Microsoft illustrated the blended cost model with an example: a tenant using 200GB above quota, split evenly between active and archived content, would incur an estimated monthly charge of US$25 at listed rates of US$0.20 per GB for active storage and US$0.05 per GB for archived storage, compared with US$40 per month if all 200GB were billed at the active rate.

Microsoft also noted that content archived through Microsoft 365 Archive is excluded from the Copilot search index, which it said can improve Microsoft 365 Copilot results by removing outdated and redundant material.

When a tenant is enrolled in SharePoint Storage, quota-related email notifications and SharePoint admin centre banners are suppressed, as the tenant is treated as within quota. Microsoft said cost-management controls therefore become an important part of the operating model for enrolled organisations.

Microsoft 365 SharePoint Storage and OneDrive Storage are available in public preview for eligible Microsoft 365 commercial customers.