Microsoft has announced the future retirement of standalone SharePoint Online (Plan 1 and Plan 2) and OneDrive for Business (Plan 1 and Plan 2). This update reflects Microsoft’s ongoing focus on delivering integrated, secure collaboration experiences through Microsoft 365.
There is no immediate action required, but organisations using these standalone plans should be aware of the upcoming changes and begin considering their longer-term options.
Why Microsoft is making this change
Microsoft has indicated that demand for standalone SharePoint and OneDrive plans has declined as customers increasingly adopt Microsoft 365 suites. Maintaining separate offerings has also led to higher operational complexity and unintended usage scenarios.
As a result, Microsoft 365 will remain the primary way customers access SharePoint and OneDrive capabilities, supported by additional storage and capacity options for more specific requirements.
Key dates and milestones
Microsoft has provided a multi-year transition period to allow customers time to plan.
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January 2026 – Retirement announcement communicated to customers
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June 2026 – End of sale
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No new customers or tenants after 31 May 2026
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Existing customers may renew during this period
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January 2027 – End of life
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No further renewals available
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Existing contracts continue until their natural expiry
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December 2029 – End of service
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All standalone plans fully retired
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Customers must have transitioned to alternative options
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Who may be impacted
Organisations currently using standalone versions of:
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SharePoint Online Plan 1 or Plan 2
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OneDrive for Business Plan 1 or Plan 2
Microsoft partners will gain additional visibility via Cloud Ascent, which is expected to be updated by the end of February to help identify impacted tenants.
What this means in practice
For most organisations, this change presents an opportunity to review whether their current approach to storage and collaboration still aligns with how the business operates today.
Considerations may include:
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How SharePoint and OneDrive are currently used across the organisation
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Storage growth trends and future requirements
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Security, compliance and governance expectations
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Whether a Microsoft 365 Business or Enterprise suite would provide broader value beyond storage alone
Taking time now to understand these factors can help avoid last-minute decisions later.
Recommended next steps
While the end of service is several years away, early planning provides the greatest flexibility. Microsoft recommends that organisations:
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Review their current licensing and tenant configuration
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Understand available Microsoft 365 and storage alternatives
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Identify any data that may need optimisation, migration or archiving
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Align future decisions with business and compliance requirements
Support and guidance
As a Microsoft partner, we’re working closely with customers to help interpret these changes and plan appropriately. If you’d like support reviewing your current setup or simply want to understand what this announcement means for your organisation, we’re happy to have a conversation.
A short, advisory review can help clarify:
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Whether you’re impacted
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What options are available
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When action may be required
