Microsoft is making a big change to how businesses buy SharePoint and OneDrive.
In a new partner advisory, the company confirmed it will retire the standalone versions of SharePoint Online and OneDrive for Business, pushing customers toward Microsoft 365 bundles instead.
The company explained that it’s “evolving its cloud storage and collaboration offerings and is retiring the standalone SharePoint Online (SPO) plan 1 and plan 2 and OneDrive for Business (ODB) plan 1 and plan 2 SKUs.”
Microsoft points to several reasons behind the decision, including low interest in standalone products and higher costs of maintaining them.
According to the advisory, the retirement “reflects low customer demand for standalone offerings, increased instances of unintended or nonstandard usage, and higher operational costs associated with maintaining these plans.”
Microsoft also emphasized that its bundled subscriptions are now the main entry point for these tools, noting that Microsoft 365 suites “remain the primary way customers access SharePoint and OneDrive capabilities.”
Key dates customers and partners need to know
Microsoft is giving organizations several years to transition, with a phased timeline:
- Retirement announcement: Late January 2026
- End of sale: June 2026, no new tenants/customers after May 31, 2026
- End of life: January 2027, no renewals allowed
- End of service: December 2029, standalone plans fully retired
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What customers should do next
Microsoft is urging partners to begin preparing now, not later. The company recommends migrating to Microsoft 365 suites or alternative storage options.
“We recommend that partners proactively identify impacted customers, communicate key dates early, and guide customers toward the most appropriate Microsoft 365 suite or storage alternative to ensure continuity and a smooth experience.”
Options mentioned include Microsoft 365 Business plans, Enterprise E3/E5, capacity packs, and pay-as-you-go storage.
By bundling these services, Microsoft aims to steer users toward a “unified, cloud-first ecosystem” that prioritizes security and AI tools such as Copilot, features that standalone plans simply weren’t built to handle.
Also read: Microsoft’s 2026 product plans put Microsoft 365 pricing and AI strategy on the same track.