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(Pocket-lint) - Microsoft has updated pricing for its OneDrive cloud storage and Office 365 subscription service. The new pricing will begin next month for all users, with Microsoft automatically moving current subscribers to lower-cost plans.

OneDrive will now provide 15 GB of free storage to subscribers, matching the amount of free storage Google Drive offers its users straight out of the gate. However, according to a post on the OneDrive blog, Microsoft claimed it raised free storage from 7 GB to 15 GB only because research data revealed three out of four people have roughly 15 GB of files stored on their computer. It's not trying to keep you out of Google's arms, supposedly.


But that's not all: When you subscribe to Office 365, you will soon get 1 TB of OneDrive storage included with your subscription at no extra cost. Microsoft made a similar announcement last April, when it gave 1 TB of space to OneDrive for Business users. All you have to do is pay $9.99 (£7.99) a month for Office 365 Home, and then you'll have 1 TB of storage space (per person, up to five people) on OneDrive.

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You could also pay $6.99 (£5.99) a month for Office 365 Personal or $79.99 (£59.99) for 4 years to receive 1 TB of storage space per subscription on OneDrive. Speaking of pricing, Microsoft has also reduced monthly rates for One Drive. Instead of paying $7.49 for 100 GB, you will soon only have to pay $1.99 (£1.99). The 200 GB plan was also dropped from $11.49 a month to $3.99.

READ: OneDrive vs SkyDrive: What's the difference?

microsoft onedrive users now get 15gb for free office365 subscribers get 1tb image 2

And finally, OneDrive users who refer friends will still receive up to 5 GB (in 500 MB increments) for each friend who accepts your invitation. You can also get 3GB of free storage space if you use the camera backup feature. Again, all of these price changes and incentives will take effect in July.

Writing by Elyse Betters.