Microsoft
is making two changes to its previous strategy. One, existing OneDrive
customers now have the option to opt-in and keep their previous 15GB of
storage + 15GB camera roll (if previously applicable). Current users can
opt into this plan starting now and running until the end of January.
Two, existing free users with more than 5GB of data on OneDrive will
receive a free year of Office 365 Personal. Microsoft claims it will
email customers about this offer early next year.
It’s interesting
to note the difference between these two approaches. If you want to
keep your 15GB to 30GB storage locker, you have to opt into doing so —
which means the vast majority of people will never notice the offer.
Microsoft is certainly aware of this. When it comes to giving away
Office 365 Personal, however, the company is going to be proactive and
reach out to users to tell them the offer is on the table. This offer
will also come with the 1TB of online storage normally provided.
As
a long-run strategy, this makes perfect sense, since getting more
people to use Office 365 may mean more long-term revenue for the
company. It’s telling, however, that Microsoft would rather give away a
free year of a product it sells for $70 (and up to 1TB of storage) than
provide free OneDrive users with an extra 10GB of data apiece.
Put differently: If Backblaze can run an entire business on providing actually
unlimited storage to users for just $5 per month, how much cash can
Microsoft possibly be saving by cutting free users to 5GB? If you
previously used between 5-15GB of storage on OneDrive, how many people
are going to pay $70 per year for the privilege of 1-10GB of additional
cloud storage per month?
12/12/2015
Microsoft reverses course on OneDrive, restores 15GB free tier
Last month, Microsoft announced a number of unpopular changes
to its cloud storage service, OneDrive: The unlimited storage plan
offered to Office 365 Home, Personal, and University customers was
reduced to 1TB; the 100GB and 200GB plans were eliminated, to be
replaced by a 50GB plan; the free storage plan was slashed from 15GB
down to 5GB; and the company declared it would no longer offer a 15GB
bonus to customers who synched their camera rolls with OneDrive servers.Customers
were anything but happy about these changes, and Microsoft appears to
have gotten the message, at least in part. A Microsoft spokesperson has
apologized for the way the previous change was communicated, stating:
“We
realize the announcement came across as blaming customers for using our
product. For this, we are truly sorry and would like to apologize to
the community. While we are not changing our overall plans, we’d like to
clarify what we are doing for customers impacted by the changes and
share a new offer which we hope will go a long way in making the
situation better for our biggest fans.”
First, the 1TB limit
on the old unlimited accounts will still apply, though users with more
than 1TB of storage online will have a 12-month grace period to migrate
it to different services or upgrade their plans. Customers not happy
about this can ask for a full refund on the service. Free accounts,
similarly, are still being trimmed to 5GB.
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