OneDrive for Business Standalone Plans Are Ending: Act Now
If you use any one of the OneDrive for Business standalone plans, you must prepare. This is because Microsoft has put out an official end date for these subscriptions. Don’t worry, nothing is happening to OneDrive or the data you keep on OneDrive.
It is just that earlier, you could get a special OneDrive for Business-only licence, which was cheaper and did not include other Microsoft services. This option is ending. No new purchases can be made after May 31, 2026, and the plans will be fully retired by December 2029.
Thousands of organizations use the OneDrive only plan, so now they will have to rethink how they keep their data on the cloud. You may have to move data, allocate more budget to acquire new licenses, all while trying to keep the files, photos, and various documents safe.
Need not fret as I have assisted countless small and medium businesses deal with such scenarios in the past and will do everything necessary so you come out on top.
So let us first see what the standalone plan was, and whether your organization is using it.
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What was the OneDrive for Business Standalone Plan
Microsoft used to offer two separate OneDrive-only plans to businesses who did not want to fully commit to the M365 ecosystem. These plans were mostly bought by businesses who required cloud storage and file management facilities without Outlook, Teams, or other O365 apps.
Here is a mini table explaining what you got in a plan:
| Feature | OneDrive for Business Plan 1 | OneDrive for Business Plan 2 |
| Monthly Cost | $5.00 per user/month | $10.00 per user/month |
| Storage | 1 TB per user | Unlimited* |
| Main Features | Basic storage + sharing | Advanced versioning, bigger file limits, better compliance |
| Target Users | Small teams, cost-conscious users | Larger organizations, heavy users |
These plans were very popular as they were much cheaper than equivalent M365 business plans. Even though you cannot use the Copilot + OneDrive combo in these plans, setting them up was easier than managing a big set of different apps. Moreover, companies were free to use other apps like Gmail/Slack, etc., and avoid vendor lock-in.
Now, all this is being changed; let us see the reasons for it.
Why is OneDrive for Business Standalone Plan Being Phased Out
If you try to find standalone plans on any official Microsoft channels, like the Admin Center or Microsoft Marketplace, you won’t be able to. Microsoft has quietly phased out the plans, and now you only have the M365 business plans to choose from.
Although resellers still have leftover stocks, you can get them. The reason is simple: Microsoft makes more money on the full Microsoft 365 plans than it does on the OneDrive-only ones. Plus, managing two distinct factions of Plans is not ideal from Microsoft’s point of view. For them, it’s better if everyone is under one umbrella when the umbrella is theirs.
Microsoft pitches this change as an opportunity and says that the full M365 plans include Teams, Exchange, Copilot, and advanced security, which is a much better value for money.
However, no matter how many more apps Microsoft adds to the plan, a simple fact remains that the plans are more expensive than the OneDrive for Business Standalone variants.
Regardless, you have a few real options. First is moving to a more expensive Microsoft 365 license. The second option is to quit OneDrive and move elsewhere.
No matter what you choose. The change is permanent, and there is no going back to the old standalone plans. Read the full announcement: Microsoft Partner Center – January 2026 Announcements
It is wise to be aware of when the closure is happening. So to help you out, I have prepared a timeline of the changes.
Timeline for the OneDrive Only Business Plans End of Life
OneDrive for Business standalone plans are not shutting off on a single date. Rather, it is a drawn-out process with features closing one by one until the full and final EOL.
- End of Sale: May 31, 2026
- End of Renewal: January 2027
- Full Retirement: December 2029
Existing users who have already paid for renewals in advance can continue to use the service till December 2029. However, it’s strongly recommended that you seek an alternative before that, to avoid last-minute rushed movements.
To help you, I recommend a set of actions with which you can preserve all of your data and move to the new system effortlessly.
Best Practices to Navigate the Closure
Make an inventory of all the data that is kept on OneDrive. This includes the files shared between in-house users and external agents.
Inform all stakeholders about the changes that are coming. Make a OneDrive usage report to track who among your users is the most affected by the change and prioritize them.
If moving the data is the only way out, make sure you use the SysTools OneDrive for Business transfer tool. (Demo Available) and start with a small pilot project before transferring en masse.
OneDrive is not just for boring documents; many users might have kept precious family memories, so check how to transfer photos from one OneDrive to another as well.
My Verdict on OneDrive for Business Standalone Shutdown
OneDrive for Business standalone plans are ending, that’s for sure. The sunset period is staggered over a few years and lasts from May 31, 2026 (when new requests stop) to December 2029 (final EOL). So if your organization is on this plan, the time to act is now. Decide what your approach is and use the special tool if you need any assistance in moving the data.
Frequently Asked Questions
Q: Is it still possible to renew the OneDrive for Business standalone plan?
Yes, for the time being, you have until January 2027 to renew currently active plans. No new plans will be available for sale after May 31, 2026.
Q: Will my files be deleted when the plan reaches EOL in 2029?
Microsoft does not delete your data immediately. If you refuse an upgrade and let your plan expire, your data goes through a specific step-by-step lifecycle. Grace period lasting 30 days, where the service continues as is, but you get bombarded with notifications.
Then comes the locked period, which lasts for 90 days. Here, Microsoft reserves the right to lock you out of your account until you switch to an available plan. If you let the lock-in period pass without any action, you enter the point of no return, where all of your data gets deleted with no recovery options.
Q: What is the cheapest, most cost-effective option to deal with the plan closure?
Depending on which plan you are on right now, here is what you should do:
Plan 1: Move to Microsoft 365 Business Basic for 1TB storage plus email and web apps.
Plan 2: Choose Office 365 E3 for 5TB+ storage and compliance features, or Microsoft 365 Business Premium for 1TB with advanced security.