Microsoft to Retire Standalone SharePoint Online and OneDrive for Business Plans

We saw that Microsoft recently introduced AI agents in OneDrive, but that’s not the only change underway. The company has now confirmed plans to discontinue standalone SharePoint Online and OneDrive for Business subscriptions, marking a broader push toward Microsoft 365 bundles.

The announcement appeared on Partner Center and was first highlighted by Neowin. It targets business customers and IT administrators who still rely on standalone plans instead of Microsoft 365 Business or enterprise suites. Microsoft is not ending sales immediately, but it wants customers and partners to start preparing for the transition.

Microsoft plans to retire certain SharePoint Online and OneDrive plans

Microsoft plans to phase out the following standalone subscriptions for SharePoint Online / OneDrive for Business:

• Plan 1, priced at $5 per user per month with 1 TB of storage
• Plan 2, priced at $10 per user per month with 5 TB of storage

Both plans also include extra features designed for larger organizations, even though Microsoft says overall adoption remains limited.

Why Microsoft is ending these plans

Microsoft says low customer demand compared to bundled Microsoft 365 offerings played a major role in the decision. The company also points to higher operational costs associated with maintaining standalone products, along with what it describes as unintended or nonstandard usage patterns.

By retiring these plans, Microsoft aims to simplify its portfolio and steer customers toward integrated subscriptions.

Timeline for the retirement

Microsoft outlined a gradual, multi-year transition. New customer sign-ups will stop on May 31, 2026, followed by the end of sales in June 2026. Subscription renewals will no longer be allowed after January 2027, and the standalone plans will be fully retired by December 2029. After that point, customers will need to move to Microsoft 365 suites, storage capacity add-ons, or pay-as-you-go options.

Microsoft encourages partners and administrators to begin planning now by reviewing customer tenants and evaluating suitable Microsoft 365 Business, E3, or E5 subscriptions. The company also recommends helping customers migrate, optimize, or archive data ahead of the final retirement dates. Microsoft says it will continue providing documentation, tools, and guidance throughout the transition period.

The news comes alongside other recent platform updates. New AI features are on the way for Visual Studio 2026, and Microsoft has added Secure Boot reporting to Microsoft Intune, giving IT admins improved visibility into device security across managed environments.

Via Neowin