Standalone SharePoint & OneDrive Retires: Migrate Before 2027
Microsoft is retiring the standalone SharePoint Online (SPO) plan 1 and plan 2 and OneDrive for Business (ODB) plan 1 and plan 2 SKUs. Microsoft ended new customer sales of standalone SharePoint Online and OneDrive for Business Plan 1 and Plan 2 on June 1, 2026.
Renewals stop in January 2027. If you are using Standalone SharePoint & OneDrive, you can plan to consolidate Microsoft 365 plans such as Microsoft 365 Business Basic, Microsoft 365 Business Standard, Microsoft 365 Business Premium and Microsoft 365 E1, E3, or E5.
Key Takeaways:
Why Is Microsoft Retiring Standalone SharePoint and OneDrive?
Microsoft is evolving its cloud storage and collaboration offerings. So, Microsoft is retiring the standalone SharePoint Online (SPO) plan 1 and plan 2 along with OneDrive for Business (ODB) plan 1 and plan 2 SKUs.
This change is made in terms of:
- Low customer demand for standalone offerings
- Increased instances of unintended or nonstandard usage and
- Higher operational costs associated with maintaining these plans.
The available upgrade paths include:
- Microsoft 365 Business Basic
- Microsoft 365 Business Standard
- Microsoft 365 Business Premium
- Microsoft 365 E1, E3, or E5
What Is the Timeline for The Retirement of Standalone SharePoint and OneDrive?
The Standalone SharePoint & OneDrive retirement announcement was officially communicated to customers in late January 2026. Right from June 2026, there is a complete end of sale. No new tenants/customers after May 31, 2026, and renewals are done for existing customers only.
From January 2027, there will be no more renewals, and the existing contracts will continue until expiration. By December 2029, all standalone plans will be fully retired while customers must transition to Microsoft 365 suites, capacity packs, or pay-as-you-go storage options.
Challenges in Migrating from Standalone SharePoint and OneDrive to Microsoft 365
Migrating from standalone SharePoint and OneDrive to Microsoft 365 suites can be challenging for several reasons. Legacy environments can include outdated workflows, and site structures that do not map directly to SharePoint Online.
High-volume data, deep folder hierarchies, and inconsistent permissions can make migration slow. API throttling issues can further impact performance. Also, businesses can face user adoption and governance challenges.
There is also a need to implement proper governance policies and clean up redundant or obsolete data before migration. Choosing the right migration tool helps you ensure data security and compliance during your migration.
Best Practices When Migrating Standalone SharePoint and OneDrive to Microsoft 365
Here are best practices before migrating Standalone SharePoint and OneDrive to Microsoft 365:
1. Audit Your Current Plan
Identify whether your organization holds standalone SharePoint Online and/or OneDrive for Business plans, how many users are on them, and when your renewal falls.
2. Check on Features & Capabilities
Compare necessary factors such as security controls, integration requirements, and licensing costs before deciding on your environment. Include IT, compliance, finance, and business stakeholders early, so the selected platform supports both operational and governance goals.
3. Plan the migration before the deadline
When you are migrating into a new Microsoft 365 tenant, choose an Microsoft 365 migration tool which performs enterprise-level migration. Before proceeding with your one-time migration, perform a pilot migration and validate permissions and metadata.
4. Build governance from the start
Before you proceed with migration, ensure to clean up permissions, remove stale content, and put a SaaS and AI governance layer in place before sprawl sets in. Organizations can enforce AI governance throughout their company with CloudFuze Manage.
CloudFuze Manage delivers continuous SaaS management and AI governance in one platform, covering AI assistant and agent governance, shadow AI and shadow IT control, license management, user lifecycle management, AI spend tracking, and more.
Prepare Your Standalone Plans Transition with CloudFuze
The cloud migration trend has now shifted to focusing on AI readiness during migration. CloudFuze Migrate supports enterprise-scale migration along with complex metadata, AI context, and collaboration context, while CloudFuze Manage enables pre-migration cleanup and post-migration governance.
Contact us for a free demo or a migration consultation tailored to your requirements.
Frequently Asked Questions
1. When does the standalone SharePoint and OneDrive plans retire?
New purchases stop after May 31, 2026. Renewals end in January 2027, and full retirement comes in December 2029.
2. How long does a standalone SharePoint migration take?
A standalone SharePoint migration depends on data volume, the number of users, and the complexity of permissions; an audit is the best way to estimate the scope and timeline.
3. Why is Microsoft retiring standalone SharePoint and OneDrive plans?
Microsoft cites low demand for standalone offerings, nonstandard usage, and higher operational costs.
4. Will OneDrive storage carry over to a Microsoft 365 suite?
Not automatically. E3/E5 licenses default to 1 TB per user, expandable to 5 TB with 5+ qualifying licenses; higher limits require a support request.
