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I was wondering if they're not actually using it as a cost saving exercise, but one to encourage people to pay up for the paid version.

I imagine there's a few people using between 5 and 15GB that before were on the free version but now would have to pay to carry on using it.

Indeed, i understand them cutting the "unlimited" version even though it was their mistake to offer it to start with but 10gb of space is not that much considering that probably only a few users actually use up all the space.

The only time I've seen people use OneDrive is when they needed to transfer a large amount of data for free. I'd imagine they just attracted the wrong type of customers by making the biggest offering. And this is them trying to cut out the fat.