Cloud storage provider Dropbox is axing the unlimited plan for its storage since some customers are not only using it for business.

In the latest update, the company announced that the majority of users will see a 5-terabyte cap for the highest offered plan.

From Unlimited to Limited Dropbox Storage

No More Dropbox Unlimited Cloud Storage? Highest Offered Plan Now Capped at 5TB Per User
(Photo: Dropbox)
Cloud storage leader Dropbox will limit the space for each new user to 5 terabytes following Google's policy change.

The use of cloud storage proves that people can move their documents freely without using any hardware. It's convenient and with just a single tap, all of your precious files and photos will be saved in an instant.

What Dropbox grants to the customers is its "all the space you need" storage plan that allows them to keep an unlimited number of digital stuff. However, the latest report says that it's ending sooner.

According to Bloomberg, Dropbox has noticed that more customers are abusing the unlimited option. Now, the company will just limit the premium plan to 5 TB per user for new customers.

Originally, the storage plan was designed to cater to the needs of businesses. However, it appears that some people are just using it for cloud reselling, cryptocurrency mining, and other activities.

According to Dropbox, these "frequently consume thousands of times more storage than our genuine business customers, which risks creating an unreliable experience for all of our customers."

Related Article: Dropbox Plans to Lay Off 16% of Workforce to Focus on AI Amid Slowing Cloud Growth

Google's New Policy Also Prompted Dropbox to Make Changes For its Plan

In May, Alphabet's Google announced that there would be some changes to the Workspace plan. Because of this, customers could no longer use their cloud with unlimited space. If they want to exceed the storage, they should pay to open an extra capacity.

A Google spokesperson said that customers will be notified they have already used up 80% of their storage's limit. They could request more anytime they want, but 5TB is already enough to house 33 million documents, according to Dropbox.

How Much is Dropbox's New Plan?

For those who want to avail of the new Dropbox plan, you can pay a monthly charge of $8 for every extra terabyte that you want to add. The "as much space as needed" plan is priced at $24 per month, per Seeking Alpha.

According to the company, those with less than 35TB of space can maintain their plan at the same price for five years. Automatically, if that exceeds, there's a range of options that will be discussed with the user.

"We recognize that changing an 'all the space you need' policy will be disappointing for some customers. While we're unable to offer this option going forward, our goal is to ensure that the vast majority of teams on our Advanced plan experience no disruption," Dropbox said. 

The game is truly evolving for file management. So far, the cloud storage spending already accounts for $55.9 billion, a 25% increase from 2022. It is expected to boom by 2027 at $127.8 billion.

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Joseph Henry

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