License & Subscription Issues

OneDrive for Business Plan 2 vs Plan 1 & Kiosk Licensing

Nimra Malik Sep 28, 2026 869 views

Question details

The user needs to understand the feature and pricing differences between OneDrive for Business Plan 1 and Plan 2, and clarify the meaning of a Kiosk license.

OneDrive for Business Plan 2 Features, Pricing, and Kiosk Licensing

Product: Microsoft OneDrive for Business
Device & OS: not provided
Scenario: Evaluating Microsoft 365 business subscriptions to determine appropriate storage plans and licensing terms for different users.
Observed behavior: Seeking detailed comparison information regarding unlimited storage prerequisites and the specific scope of Kiosk licensing.

Before you start

Before comparing licensing plans, log in to the Microsoft 365 Admin Center to check your current subscription status and monitor your organization's existing storage usage.

Solution 1Recommended

Compare OneDrive for Business Plan 1 and Plan 2 Features

Understand the main differences in storage quotas and compliance capabilities between the two primary standalone OneDrive plans.

OneDrive for Business provides cloud storage solutions for enterprises, but the features differ significantly between Plan 1 and Plan 2, especially regarding storage limits and security protocols.

Review Plan 1 Specifications

OneDrive for Business Plan 1 offers 1 TB of cloud storage per user. It covers essential file sharing, syncing, and standard security features suitable for most small to medium businesses.

Examine Plan 2 Unlimited Storage

Plan 2 includes all the features of Plan 1 but introduces the possibility of unlimited cloud storage. To qualify for unlimited storage, your organization must have a qualifying subscription with at least 5 users.

Check Advanced Compliance Requirements

Plan 2 is designed for stricter regulatory environments, offering advanced data-loss prevention (DLP) and in-place hold features to preserve deleted or edited documents for eDiscovery.

Compare OneDrive for Business Plan 1 and Plan 2 Features

Prerequisites for Unlimited Storage: Unlimited storage in Plan 2 is not granted instantly. Users initially receive 1 TB, which an administrator can increase to 5 TB. If more space is required, admins must contact Microsoft Support to request additional storage quotas.

Solution 2

Understand Exchange Online Kiosk Licensing

Clarify the definition of a Kiosk license and how it fits into the Microsoft 365 ecosystem.

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Frequently Asked Questions

Does OneDrive for Business Plan 2 automatically give me unlimited storage from day one?

No. Even with a qualifying Plan 2 subscription containing at least 5 users, each user is initially capped at 1 TB. An administrator must manually increase this to 5 TB. If more than 5 TB is needed, the admin must contact Microsoft Support to request additional storage.

Can an Exchange Online Kiosk user save files to OneDrive for Business?

Exchange Online Kiosk is an email-centric license for frontline workers and does not include a dedicated OneDrive for Business quota. Users who need cloud file storage must be assigned a Microsoft 365 plan that includes OneDrive or a standalone OneDrive for Business license.

What happens to my data if my company downgrades from Plan 2 to Plan 1?

If you downgrade to Plan 1 and your current stored data exceeds the 1 TB limit, your OneDrive will become read-only. You will still be able to download and access files, but you cannot upload or sync new files until you free up space to drop below the 1 TB threshold.

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