Microsoft is giving all Office 365 customers unlimited OneDrive storage.

The giveaway, announced today, lifts the 1TB storage limit from subscribers of its cloud productivity suite, just a matter of months after a fourfold increase from 27GB of space.

Customers will not get the improved capacity immediately, however, with Redmond set to roll out the new feature piecemeal over the next few months to Home, Personal and University subscription holders.

OneDrive for Business users may wait longer, under Microsoft’s policy to provide plenty of notice for significant service changes, and those signed up to get new features more quickly will have their accounts updated early next year.

OneDrive VP Chris Jones said in a blog post: "While unlimited storage is another important milestone for OneDrive we believe the true value of cloud storage is only realized when it is tightly integrated with the tools people use to communicate, create, and collaborate, both personally and professionally.

"That is why unlimited storage is just one small part of our broader promise to deliver a single experience across work and life that helps people store, sync, share, and collaborate on all the files that are important to them, all while meeting the security and compliance needs of even the most stringent organizations."

The move sees Redmond step up its offering in the face of file-sharing rivals such as Google’s Google Docs as well as Box and Dropbox.

It reduced OneDrive cloud storage subscription rates back in June, the latest monthly prices being $1.99 for 100GB (previously $7.49) and $3.99 for 200GB (previously $11.49).