Effective June 1, 2026, Microsoft will stop selling its standalone SharePoint Online and OneDrive for Business Plan 1 and Plan 2 subscriptions. This change begins a phased retirement: existing customers may continue to renew these standalone plans until January 2027, and all standalone SharePoint Online and OneDrive for Business plans will be fully retired by December 2029.
These services are not disappearing from Microsoft’s portfolio – they remain available as part of Microsoft 365 subscription suites (e.g. Business and Enterprise plans) that include SharePoint and OneDrive. There will be no immediate service disruption for current users during the transition period. However, organizations using the standalone plans should start planning now to move to an alternative (such as a Microsoft 365 plan or add-on) well before the final 2029 retirement date.
What is SharePoint Online?
SharePoint Online is a cloud-based service for creating internal websites (intranets) and managing content within an organization. Companies use SharePoint as a secure place to store, organize, share, and access information from any device. For example, teams can set up SharePoint sites with document libraries and lists to collaborate on files, coordinate projects, and publish internal news.
What is OneDrive for Business?
OneDrive for Business is Microsoft’s cloud storage solution for individual employees as part of Microsoft 365. It provides each user with a personal online drive to save work files, which they can then sync across their PCs and mobile devices and access via the web. OneDrive for Business allows users to share files with colleagues or external partners securely and collaborate in real-time using Office apps. In essence, OneDrive is like a personal drive in the cloud for each user (integrated with the Office suite), while SharePoint serves as a team and organization-wide content hub.
Both SharePoint Online and OneDrive for Business enable working from anywhere with an internet connection, with security and permission controls to protect company data.
Licensing
With the standalone SharePoint Online and OneDrive for Business plans being retired, organizations will need to switch to licensing these services through Microsoft 365 subscriptions or new storage add-ons. SharePoint Online and OneDrive will only be available as part of broader Microsoft 365 bundles going forward. This means that instead of buying SharePoint or OneDrive as separate Plan 1/Plan 2 licenses, customers should transition to a Microsoft 365 plan that includes these services:
- For small and medium-sized businesses, Microsoft 365 Business plans (such as Business Basic, Business Standard, or Business Premium) include SharePoint and OneDrive, along with Exchange email and Teams. These plans provide cloud services in an integrated package.
- For larger organizations or those with advanced needs, Microsoft 365 Enterprise plans (E3, E5, etc.) include SharePoint and OneDrive (among many other apps) with higher storage allocations and additional features. Choosing an appropriate Enterprise plan will ensure continuity of SharePoint/OneDrive service with the added benefits of Office apps, enhanced security, and compliance tools.
- If you only used standalone plans to get extra storage, Microsoft is introducing new ways to buy storage without a standalone license. Customers needing more than the included storage can purchase additional SharePoint storage capacity add-ons, or use the upcoming Pay-As-You-Go (PAYG) storage option for SharePoint Online. Microsoft added a SharePoint storage PAYG model to its roadmap for first half of 2026. These options give you flexibility to expand storage for SharePoint/OneDrive as your organization grows, even after the standalone plans are gone.
Given the complexity of licensing choices, it’s wise to get professional guidance during this transition. SCHNEIDER IT MANAGEMENT as your trusted Microsoft licensing expert provides tailored advice on the optimal Microsoft 365 licensing strategy for your situation. This might include identifying which Microsoft 365 plan fits your needs best and how to manage any additional storage requirements.
Our expert advice can help you smoothly migrate from the retiring standalone plans to a more comprehensive Microsoft 365 solution without paying for unnecessary extras or losing any data.
More Information
For our Microsoft page, please visit: https://www.schneider.im/software/microsoft.
You can also contact SCHNEIDER IT MANAGEMENT for a personalized briefing on this change and assistance with planning your next steps. We’re here to ensure you understand your options and make the transition as easy as possible.
Please contact us for expert services on your specific Microsoft software and online services requirements and to request a quote today.
