Microsoft is retiring standalone SharePoint Online and OneDrive for Business plans (Plan 1 and Plan 2), ending one of the more affordable entry points into its cloud ecosystem. Customers must transition to Microsoft 365 suites or alternative storage options.
End of sale: June 1, 2026 (no new customers or tenants)
End of renewals: January 2027 (existing contracts honored)
Full retirement: December 2029 (all standalone plans cease)
Affected plans: SPO Plan 1 ($5/user/month), SPO Plan 2 ($10/user/month), ODB Plan 1, ODB Plan 2
Alternatives: Microsoft 365 Business/Enterprise suites, capacity packs, or pay-as-you-go storage
Microsoft cites low customer demand, "unintended or nonstandard usage," and higher operational costs for maintaining these plans. Industry observers note the "nonstandard usage" likely refers to customers using standalone plans primarily for cheap, high-capacity cloud storage. For SMBs currently on Plan 1 at $5/user/month, migration to Microsoft 365 Business Basic ($6/user/month) represents the cheapest path forward, though larger organizations face more significant cost increases when moving to E3/E5 suites.
Sources: MC1224567 · The Register · Petri
