Cloud storage prices are in a race to the bottom, and Microsoft just dropped a big hammer on its cloud storage competitors.

Office 365 users now get unlimited OneDrive storage.

“Today, storage limits just became a thing of the past with Office 365. Moving forward, all Office 365 customers will get unlimited OneDrive storage at no additional cost. We’ve started rolling this out today to Office 365 Home, Personal, and University customers,” reads a Microsoft post.

Microsoft’s Office 365 has been incredibly successful for the company. They launched back in early 2013, and now have 7 million users according to the company’s latest earnings. Its user base grew by 25% just last quarter.

How does today’s salvo from Microsoft compete with Google’s offerings? Google offers a paid version of Google Drive for as little as $5/user/month. The $5/month option comes with 30 GB of online storage. Upgrade to $10/month and you’ll get 1TB. Unlimited storage doesn’t happen until you add 6 people to the account at $60/month.

Here’s what Microsoft now offers after today’s announcement. For $6/month, you get the ‘Personal’ version of Office 365 and unlimited cloud storage. Plus, you get copies of the Microsoft Office software for PC, Mac and tablets. $10/month nets you the Home edition of Office 365.

The bigger winner will be students. Some colleges offer Office 365 for free, and it will also include unlimited free storage.

I touched on how it compares with Google, but what about Dropbox? Dropbox offers 1TB of cloud storage for $10/month. Most of you probably won’t even use 1TB. But, who can argue with Microsoft’s unlimited storage offering.

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It’ll be interesting to see how Google, Dropbox and others respond to Microsoft’s latest move. It wouldn’t shock me to see them adopt Microsoft’s unlimited storage stance. We shall see. For now, Microsoft’s online storage solution is the best value.

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