Some users abused the unlimited feature, exceeding 75 TB per user, or 14,000 times the average, the company said.

Office 365 Home, Personal and University subscribers no longer will get unlimited storage; instead, they'll get 1 TB of OneDrive storage for free.

Free OneDrive storage will be slashed from 15 GB to 5 GB for all current and new users beginning early next year, and the 15-GB camera roll storage bonus will be discontinued. The 100-GB and 200-GB paid plans for new users will be replaced with a 50-GB plan priced at $2 a month.

No mention was made of Office 365 business subscriptions.

OneDrive was designed to be more than basic file storage and backup, and the changes are necessary to ensure that Microsoft can continue to deliver a collaborative and intelligent service, the company said.

"This is driven by Microsoft recognizing that a few people are abusing the service, and [it's] making a measured adjustment to their offerings in line with other cloud storage solutions," said Ian Campbell, CEO of Nucleus Research.

It's "a nonevent, and Nucleus doesn't expect it to have an impact on Microsoft's earnings in the future," he told the E-Commerce Times.