There are a lot of people attributing malice to Microsoft's announcement. I think it is mostly incompetence. I think the underlying Azure storage technology is behind Google's and Amazon's and does not have the same ability to take advantage of decreasing costs due to improved technology. How else do you explain everybody else dropping their prices and/or increasing their quotas while Microsoft reduces their quotas. Google still has unlimited storage for photos up to a certain size and 1080p video. Then again they are not using Azure Storage.

That Microsoft is having problems with scaling Azure also makes sense of the announcement that they are reducing the free tier storage. If you looked at it from just that they are being abuses by people storing 75tb then reducing the free tier storage does not make sense. However, if they are having issues with the underlying Azure Storage and are wanting to relieve pressure on it, then reducing the amount of storage and the number of accounts because of existing users migrating to other cloud storage providers makes sense.

If you are considering Azure for your cloud provider, consider that their halo internal customer OneDrive decided that Azure Storage did not allow them to fulfill what they promised to their customers and they are being forced to cut back at the cost of a huge customer backlash and loss of goodwill. If Azure Storage cannot be relied upon by their internal customer, how can your company rely on it?