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Microsoft targets Dropbox and Google with unlimited OneDrive storage for Office 365 subscribers

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No more storage limits

Microsoft is removing its OneDrive storage limits for Office 365 subscribers. If you’re an Office 365 Home, Personal, or University subscriber then OneDrive storage will be unlimited in the coming months as Microsoft rolls out its changes to every account. OneDrive for Business customers will also get unlimited storage as part of Microsoft’s Office 365 roadmap. While Microsoft's unlimited OneDrive storage is rolling out to all Office 365 accounts in the coming months, you can opt-in to be upgraded early over at Microsoft's OneDrive preview site.

The surprise move comes just months after Microsoft gifted 1TB of OneDrive space to Office 365 subscribers. At the time Microsoft also doubled its free space and aimed to beat competition from Google and Dropbox to widen the storage gap. Today’s unlimited storage announcement changes things significantly, and Microsoft claims it’s all part of the company’s plan to make "OneDrive the world’s cloud storage leader." Microsoft’s latest offer means unlimited OneDrive storage and a copy of Office that works on Mac or PC, tablets, and smartphones is only $6.99 per month. Google and Dropbox charge $9.99 a month for 1TB of space alone, without the additional Office software. Google also offers Drive for Work to business for $10 per user per month with unlimited storage.

Google and Dropbox will need to respond

Microsoft is putting huge pressure on the competition with unlimited storage, and it’s now down to Google and Dropbox to respond on the consumer side. Dropbox slashed its pricing following Microsoft’s initial 1TB of OneDrive space with Office 365, and the storage company believes its Pro offering could appeal to Office users. Google has not yet responded to Microsoft’s 1TB offer, and the new unlimited storage announcement could force the search giant to counter with lower prices or its own unlimited offering.

Update 27th October 18:50 ET: article updated to include information on Google Drive for Work.