Microsoft Slashes Prices And Increases Cloud Storage Limits For OneDrive And Office 365

Almost as if in response to the Amazon Fire Phone’s announcement of unlimited cloud photo storage, Microsoft announced an aggressive expansion of the limits for its cloud-based storage offerings by increasing the free quota for OneDrive from 7 GB to 15 GB on Monday. In addition, Microsoft announced that all Office 365 subscriptions will include 1 TB of cloud storage. Finally, Microsoft reduced storage prices for cloud storage independent of an Office 365 subscription by 70% such that monthly prices for 100 GB of storage are now $1.99 as opposed to $7.49 and 200 GB are $3.99 instead of $11.49. Microsoft’s pricing of free storage represents an astute move to continue its aggressive rollout of Office 365 by shifting customers to its cloud-based productivity suite in contrast to the client-based installations via download or DVD. Moreover, Microsoft continues to tout the possibilities for collaboration enabled by the cloud and as such, users are likely to see enriched collaboration functionality coming to the Office 365 suite soon. Microsoft CEO Satya Nadella underscored the importance of the connection between the cloud and collaboration in a blog post by noting that “the cloud is enabling a world where you can walk up to any supported device, sign in, collaborate, communicate and share your creations with the world. Doesn’t matter what you make, where you make it or what device you use. The cloud is there to help.” Whereas Steve Jobs introduced iCloud primarily in the context of device synchronization, and the resulting operational simplicity specific to accessing the same version of every file and folder from every machine, Nadella appears to be taking things one step further by positioning the cloud as a platform fundamentally for collaboration, communication and sharing.