Microsoft Boosts OneDrive Storage From 25GB To 1TB Per User

In the cloud storage wars, capacity is a weapon, and one that is rapidly losing its dollar value. Put simply: Companies that offer cloud storage are scrambling to add value on top of stored gigabytes, as the marginal dollar price that can be charged for that storage is rapidly dropping to zero.

Microsoft, making that point even more explicit today announced that it is bolstering its provided OneDrive for Business and Office 365 ProPlus products to one terabyte, up from 25 gigabytes in the case of the former.
Microsoft just cut the fee for the proximal stored gigabyte to a titch over zero. So, storage itself can no longer be a differentiator. That’s tough for companies like Dropbox and Box that have long charged for storage.

Google and Yahoo have also helped lower the cost of storage. Yahoo offers a terabyte of storage on Flickr, and Google recently axed its prices for cloud storage to boot.

Dropbox and Box must move up the value stack, and are, to their credit, working hard to do so. But Microsoft doesn’t want to cede the space, as doing so would directly impugn its future Office cash flow. And that’s not something it wants to divest.