SOLVED: M365 Downgrading – Impact on 3TB OneDrive Accounts Downgraded 1TB Max License?

In January 2025, Microsoft is retiring the Microsoft Action Pack (MAPs) package for Partners like Up & Running, and the replacement is named Partner Launch Benefits. Both are similar but the M365 license in the Action Pack is an “E3” which offers unlimited OneDrive space (although it defaults to 1TB to start), and the Partner Launch plan only offers an M365 Business Premium account, which provides a maximum of 1TB.

This is a problem for us as we have several users with more than 1TB on their OneDrive‘s. So we wondered if the system would grandfather our users in. We called Microsoft and were told that if we downgrade from an E3 to Business Premium, while files will not be deleted for those over the 1TB limit, those files will be set to read-only… not good.

Specifically we were told:

When a OneDrive account’s storage limit is reduced due to a change in licensing, such as moving from a Microsoft Action Pack (MAPS) with an E3 license to Partner Launch Benefits with a 1TB limit, the following happens:

1. Storage Limit Enforcement: The account will be subject to the new 1TB storage limit. If the account currently uses more than 1TB, it will be over the new limit.
2. Access to Files: Users will still have access to their files, but they won’t be able to upload new files or make changes that increase the storage usage until they reduce their storage below the new limit.
3. Notifications: Microsoft typically sends notifications to users when they are approaching or have exceeded their storage limits, providing guidance on how to manage their storage.
4. Data Management: Users will need to reduce their storage usage by deleting or moving files to other storage solutions to comply with the new limit.
5. Potential Account Restrictions: If the storage usage is not reduced, the account may eventually face restrictions, such as being unable to sync files or access certain features.