Universities Face $360K Per Petabyte Cloud Storage Hike as Microsoft Eliminates Unlimited Options
Universities are facing a challenge as Microsoft's recent update to its cloud storage pricing eliminates unlimited storage options. The new pricing structure, which goes into effect in December 2026, will charge universities $360,000 per petabyte yearly for excess storage.
Arcitecta, a Melbourne-based data management firm, has developed a tool called Mediaflux Connect 365 to help universities migrate their data to cheaper on-premises solutions or alternative cloud storage before the new pricing structure takes effect. The tool scans an institution's OneDrive, SharePoint, and Teams estate, categorizes what is there, and manages moving it to cheaper alternatives.
According to Gartner, universities that cut their data usage to the prescribed sizes could see nearly a 90% reduction in storage costs. However, Microsoft has enforced a 400GB/hour cap on data throughput, which can make it difficult for large institutions to move their data off its servers without incurring overage charges.