Microsoft Retires Standalone SharePoint Online and OneDrive for Business Plans
Standalone SharePoint and OneDrive plans face a gradual phase-out as Microsoft doubles down on Microsoft 365.
Key Takeaways:
- Microsoft is phasing out standalone SharePoint Online and OneDrive for Business plans over a multi-year timeline.
- Existing customers can renew for now, but new purchases will stop in 2026.
- Organizations will eventually need to move to Microsoft 365 or alternative storage options.
Microsoft is preparing to retire its standalone SharePoint Online and OneDrive for Business subscriptions (Plan 1 and Plan 2). Commercial customers using these plans will be required to migrate to alternative Microsoft offerings over the coming years as part of a phased transition.
What SharePoint Online and OneDrive for Business plans offer?
SharePoint Online Plan 1 and Plan 2 are standalone cloud subscriptions that give organizations access to SharePoint without purchasing a full Microsoft 365 suite. Plan 1 is designed for basic document management and team collaboration, which offers features like file storage, sharing, version control, and simple intranet sites. Moreover, Plan 2 includes everything in Plan 1 plus more advanced capabilities such as enterprise search, compliance features, and support for larger, more complex deployments.
Meanwhile, OneDrive for Business Plan 1 and Plan 2 are standalone cloud storage subscriptions that allow users to store, sync, and share files securely without needing a full Microsoft 365 license. Plan 1 focuses on personal work file storage and sharing across devices. Plan 2 includes the same core capabilities with larger storage limits and additional compliance, governance, and administrative controls designed for organizations with more advanced data management and regulatory needs.
“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,” Microsoft explained.
The SharePoint and OneDrive retirement timeline
The retirement process for the standalone SharePoint Online and OneDrive for Business plans is spread over several years to give customers time to adjust. Microsoft announced the change in late January 2026, with sales ending in June 2026. After May 31, 2026, no new customers or tenants will be able to purchase these plans. However, existing customers will be able to continue to renew their subscriptions until this end‑of‑sale date.
In January 2027, the plans reach end of life, but customers can keep using the service until their current contracts expire. The final cutoff comes in December 2029, when the standalone plans will be fully retired and access ends. At that time, all customers must have moved to Microsoft 365 subscriptions, additional storage capacity options, or pay‑as‑you‑go storage alternatives.
Microsoft advises that partners should review their customer base to identify who is using the affected plans and clearly communicate the upcoming changes and timelines. They should guide customers toward suitable Microsoft 365 options, such as Business or E3/E5 plans, and support them with data migration, optimization, or archiving to ensure a smooth transition.
Rabia has a master's degree in Software Engineering and she has years of experience writing professionally about Microsoft products and other technologies. Rabia has also written for OnMSFT.com as well as Windows Report. She is always up to date on t...
