An individual Office 365 subscription costs US$70 a year, and a home subscription, which would give unlimited storage to up to five users, costs $100 a year.
Google sells a terabyte of cloud storage for $10 a month but gives away its productivity software free.
Microsoft’s move puts more pressure on providers such as Dropbox and Box, which don’t currently rely on software or advertising revenue streams to supplement server costs. They have already had to drop prices in order to remain a viable option for customers.
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