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Monday, June 23, 2014
Microsoft OneDrive Is Now Cheaper, Offers More Capacity

Microsoft will increase capacity and lower prices for OneDrive, increasing pressure on other cloud storage providers.

The company will soon be offering 15GB to OneDrive users for free. USers will get access to this free OneDrive storage also when they sign up for Office Online, the Web-based version of Office, and also when they sign up for, Microsoft's free webmail service.

Microsoft is also slashing the cost of additional storage for OneDrive. An extra 100GB will now cost $1.99 per user/month, down from $7.49, and 200GB will cost $3.99 per user/month, down from $11.49.

For Office 365 Home and Office 365 Personal customers, Microsoft is also increasing the OneDrive storage, from 20GB to 1TB per user.

The increase to 1TB also applies to Office 365 University, which is for college and university students and costs $79.99 for four years.

To sum up:

- Free storage climbs to 15 gigabytes from 7GB.
- All Office 365 users now get 1 terabyte of storage, up from the previous 20GB allocation.
- Office 365 Personal subscribers get 1TB of storage for $6.99/month.
- Office 365 Home subscribers get individual storage of 1TB for up to five people for $9.99/month.
- Microsoft also is reducing monthly storage subscription fees for users who don't want Office to $1.99 for 100GB from $7.49/month. It's dropping the price on 200GB to $3.99 from $11.49.

The pricing updates will take effect in the next month, and current subscribers will automatically be moved to the new prices, Microsoft said.

The move is expcted to add pressure to competitive cloud services such as Dropbox, Apple and Google.

Dropbox options for consumers start with a free 2GB plan, which pales in comparison with the 15GB OneDrive now offers right out of the box.

People can upgrade to Dropbox Pro, which gives them 100GB for $9.99 per user/month. Dropbox Pro also has options for 200GB for $19.99 per user/month and 500GB for $49.99 per user/month.

With a free Google account, people get 15GB of storage for files in Drive, Gmail messages and Google+ photos, and can purchase 100GB of additional storage for $1.99 per month, price levels Microsoft is now matching.

Apple's iCloud includes 5GB of free storage. Users can buy an additional 10GB for $20 per year, 20GB for $40 per year and 50GB for $100 per year.

Box offers individual free accounts with 10GB of storage, and a Starter tier for teams of up to 10 people with 100GB of storage for $5 per user/month.

Dropbox for Business costs $15 per user/month for a minimum of five users and provides unlimited storage.

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