Microsoft 365 Family plans now come with 4TB less of OneDrive storage than they did until this week. Microsoft details the change in a support document.

That document frames the change as a positive because it means storage is allocated to users who need it automatically, but the public has had a different reaction. I've received several messages from disappointed users, and other outlets are rightly highlighting consumer outrage. Some people I know have already said they plan to cancel their subscription due to the change.

Regardless of how much storage an individual family actually uses, Microsoft 365 Family now includes substantially less cloud storage than it did before while costing the same amount.

I keep track of the best Microsoft 365 deals and update my piece with discounts regularly. If you know when to hunt, you can get a year of Microsoft 365 Family for $99.99 despite the normal price being $129.99 (the price of Microsoft 365 went up in January 2025). But with the massive 4TB reduction in OneDrive storage, there is no way to retain the value of Microsoft 365 Family. Even if you got it at a discount, you'd be getting less than before.

Considering Microsoft can roll out this change immediately for new and upgraded subscriptions, I understand why some people may hesitate before subscribing to Microsoft 365. Based on the Microsoft support document, Microsoft 365 Family plans will be moved to the shared storage model upon your first renewal on or after May 2, 2027.

Here is the exact phrasing from Microsoft:

"For existing Microsoft 365 Family and Premium subscribers, this change generally takes effect after the first subscription renewal on or after May 2, 2027, unless an eligible plan change occurs earlier."

I interpret that to mean that renewals made before that cutoff should not force you to the shared storage model. If that's accurate, you should be able to stack some time onto your subscription to keep a total of 6TB for a bit longer.

I'd suggest checking with Microsoft before making any purchases. If you receive confirmation from Microsoft that stacking subscriptions delays the change, please let me know. I have also reached out to Microsoft.

Windows Central take

I actually understand Microsoft's argument for having shared storage across a family. I use much more cloud storage than my wife, so it would be convenient to have more than 1TB of storage accessible through my account. My daughter, who is a toddler, only "uses" cloud storage through the photos and videos I back up for her.

But sharing a pool of storage does not make up for reducing the total storage across the plan by 4TB. For my use, I'd be okay with sharing 5TB across the entire family. But any forced reduction in storage is difficult to justify.

Now, during a cost of living crisis, many people will have to look at alternatives to OneDrive or pay to have more cloud storage.