Microsoft (MSFT) has announced today that all Office 365 subscribers will get unlimited OneDrive cloud storage. This is the second time Microsoft has added cloud storage incentives to their productivity suite, offer 1TB of space a few months ago. 

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This comes just after a big surge in cloud storage revenue from Microsoft, up 120 percent in the consumer market. The increase in revenue has made Microsoft more confident that unlimited OneDrive storage can boost interest in Office 365. 

Office 365 costs $6.99 per month and works on PC, Mac, tablets and smartphones. This is already a good deal compared to other productivity suites, but with the new unlimited storage, it becomes the best deal available. 

Dropbox and Google Drive charge more for 1TB of storage alone, and Dropbox doesn't have any productivity tools available. This is an aggressive move by Microsoft to not only grab more cloud customers, but to expand its Office 365 members. 

Microsoft did not reveal how many subscribers were currently using Office 365. The whole Windows 8 part was skipped over fast. OneDrive and Microsoft Azure were the key winners in Q3 and now Microsoft can push the storage service even more. 

Google might be in a safe spot, since their Drive service is free to a certain point, but Dropbox is in serious danger of becoming irrelevant. They cannot compete with Microsoft on services and its cloud service only goes so far, before it becomes inferior to other products on the market. 

Cloud storage has dropped in value over the past five years to the point where 1TB can be sold for under $5 per month. This is great for small businesses and professionals, allowing them to save all work on a cloud service that can be shared with colleagues - it is one of the reasons Dropbox has become so popular. 

Microsoft wants to make this an even better deal with the Office 365 suite, and this could be the first big move into the education sector with cloud storage, offloading a lot of the work done in school to the cloud.

Tags Office 365, OneDrive, Cloud storage