SharePoint and OneDrive Retirement and Power Apps Changes
Microsoft licensing changes 2026 affect SharePoint, OneDrive, and Power Apps. Review users now and start migration planning to avoid disruption and costs.
Table of Contents
Microsoft announced two licensing changes for 2026 that affect cloud storage, collaboration, and Power Platform usage. If your organization uses SharePoint Online, OneDrive for Business, or Power Apps, you should review your environment soon and begin planning.
These updates are not immediate service shutdowns, but they do require preparation. Companies that wait until renewal periods may face rushed migrations, unexpected costs, or user disruption.
Retirement of Standalone SharePoint Online and OneDrive for Business Plans
Microsoft is retiring the standalone SharePoint Online Plan 1 and Plan 2, and OneDrive for Business Plan 1 and Plan 2 licenses.
Moving forward, Microsoft 365 suites will be the primary way customers access SharePoint and OneDrive services.
Why Microsoft is retiring these plans
Microsoft is consolidating collaboration services into Microsoft 365 because standalone storage plans created:
Low adoption compared to Microsoft 365 suites
Nonstandard usage scenarios
Higher operational overhead
Fragmented security and compliance management
The focus is now on integrated collaboration, identity, and security instead of separate products.
Key timeline
- End of sale: June 2026
New customers cannot purchase after May 31, 2026. Existing customers can renew only. - End of life: January 2027
Renewals stop, contracts remain active until expiration. End of service: December 2029
Standalone plans are fully retired.
After this date, customers must transition to:
Microsoft 365 Business plans (Limited to 1 TB of storage per user)
Microsoft 365 E3 or E5
SharePoint storage capacity add ons
Pay as you go storage
- Office 365 E3 or E5
Power Apps Per App License End of Sale
Microsoft also changed Power Platform licensing.
Starting January 2, 2026, new customers can no longer purchase the Power Apps per app license.
Impact by customer type
Enterprise Agreement customers
No disruption. You may continue using and renewing the license and add users during the agreement term.
CSP customers
No impact. Existing and new customers can continue to purchase, use, and renew their Power Apps per app subscription. Microsoft is still in the process of updating its price lists, and the SKU will be available for purchase again starting in early April 2026.*
MPSA customers
The license will not be offered again. After the agreement ends, customers will have a 60 day window to migrate to another licensing option.
What you should review
Organizations should evaluate how Power Apps is licensed and used, including:
Number of active users
App usage
Per user licensing
Pay as you go licensing
This is a good moment to reduce unused apps and align licensing with real usage.
*Note: CSP clarification added on 3/6/2026
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Need Assistance?
We recommend you reach out to a 365 Cloud Store licensing specialist with any additional questions. We can review your tenant, identify impacted users, and help you plan a smooth transition.
Written by Iovalli Acevedo Marketing Manager
February 18, 2026
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