Microsoft Kills Free OneDrive Storage Loophole

Microsoft will begin enforcing storage limits on unlicensed OneDrive accounts from January 27, 2025, ending a loophole that allowed organizations to retain departed employees' data without cost.

Data from accounts unlicensed for over 93 days will move to recycle bins for another 93 days before permanent deletion, unless under retention policies. Archived data retrieval will cost $0.60 per gigabyte plus $0.05 monthly per gigabyte. Organizations must either retrieve data, add licenses, or risk losing access, Microsoft has warned.

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