Microsoft Offers Free 1TB of OneDrive Storage for Office 365 Users

Redmond is getting aggressive with marketing moves to woo consumers to its Office 365 subscription, the Web-based version of its productivity software that includes Office, PowerPoint and Excel.

Microsoft is now offering a full terabyte (TB) of storage space on its OneDrive, a free personal cloud storage service that people can use to store photos, videos and documents, to consumers who sign up for monthly Office 365 subscriptions. Redmond announced in April it was providing 1TB of OneDrive storage to its Office 365 Business customers.

This incentive follows the March roll out of Microsoft Office 365 Personal, which was the lowest-ever pricing on the service. You can tap into the online productivity software for as little as $6.99 a month. But Microsoft just sweetened the deal with a massive storage upgrade that could turn the heads of Office 365 fence-sitters.

Omar Shahine, a Group Program Manager at, broke it down this way in a recent blog post: For Office 365 Home, which runs $9.99 a month youEUll get 1TB of storage per person for up to five people. With Office 365 Personal ($6.99 a month) and University ($79.99 for four years) you will get 1TB per subscription.

Tapping Into Synergies

Is this about driving Office 365 subscriptions or OneDrive subscriptions? It may be a little bit of both as Redmond seeks synergy between its cloud-based products. Microsoft relaunched the OneDrive service, formerly known as SkyDrive, in February.

Better than its predecessor, OneDrive offers new features, like improved video sharing and newly updated apps for Windows Phone, iOS, Android and Xbox. The new monthly prices will be $1.99 for 100GB (previously $7.49) and $3.99 for 200GB (previously $11.49).

EUOur data tells us that three out of four people have less than 15GB of files stored on their PC,EU Shahine said. EUFactoring in what...

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