Microsoft has quietly announced that it is retiring some SharePoint Online and OneDrive for Business plans. As the company seeks to push people into taking up bundled subscriptions, it is killing off a total of four standalone plans.
What this means is that SharePoint Online plan 1 and plan 2, as well as OneDrive for Business plan 1 and plan 2 are no more. While Microsoft cites low engagement as one of the reasons for the retirements, the fact that the company is trying to push Microsoft 365 makes this seem more like the real reason.
Microsoft is pinning the retirement to the end of January, but the announcement was so low key that it is only really becoming known now. In a message sent out to its partners, Microsoft says:
Microsoft is evolving its cloud storage and collaboration offerings and is retiring the standalone SharePoint Online (SPO) plan 1 and plan 2 and OneDrive for Business (ODB) plan 1 and plan 2 SKUs. This change reflects low customer demand for standalone offerings, increased instances of unintended or nonstandard usage, and higher operational costs associated with maintaining these plans. As Microsoft continues to invest in secure, scalable, and integrated experiences, Microsoft 365 suites remain the primary way customers access SharePoint and OneDrive capabilities.
Quite what Microsoft means by “unintended or nonstandard usage” is not quite clear, but the company wants helps from partners to shift users to different subscriptions:
As a Microsoft partner, you play a critical role in helping customers plan for this transition. Customers have an extended window to prepare, and Microsoft is introducing more storage options to support a wide range of needs. We recommend that partners proactively identify impacted customers, communicate key dates early, and guide customers toward the most appropriate Microsoft 365 suite or storage alternative to ensure continuity and a smooth experience.
The company adds that partners should “begin planning now, reviewing customer tenants, positioning Microsoft 365 Business or E3/E5 suites where appropriate, and helping customers optimize, migrate, or archive data as needed.
The full timeline of events is as follows:
- Retirement announcement: this change is communicated to customers in late January 2026.
- End of sale: June 2026 (no new tenants/customers after May 31, 2026; renewals for existing customers only).
- End of life: January 2027 (no renewals; existing contracts continue until expiration).
- End of service: December 2029 (all standalone plans fully retired; customers must transition to Microsoft 365 suites, capacity packs, or pay-as-you-go storage options).
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