I think you are referring to the 'free' OneDrive limit although this doesn't seem to be clear in the article. If you're a paying customer you get 1Tb per user.
Microsoft is to cut the number of files needed to fill the increasingly limited space available to OneDrive users by upping the file size limit to 250GB. Previously 100GB, the increase is in response to what the company described as "helpful and insightful feedback" from its customers and partners, particularly those involved …
I have a fast connection, but I find that both upload and (sometimes) download speeds are prohibitive, even with several TB by virtue of Office 365. And OneDrive is one of the faster ones.
I also find the OneDrive interface a pain to use. Yes, I realise that might just be me, but it isn't even close to using Explorer when you're trying to find something.
I'm just about to invest in a NAS system so I can manage my stuff locally because of it.
Like many, I'm still keeping my storage local and not having any of these problems.
Cloud was supposed to make things simpler. The reality with the constantly changing rules and limits seems to imply something different.
Any guesses until how long after COVID is behind us before the vendors change again or slap on extra charges ?
On paper, the idea of the cloud is brilliant. But when you factor in the realities of connection speed, connections down (at either end), and the associated issues of working with files without having to download them first... I guess for many it isn't ideal.
At least with a NAS, I shouldn't have to worry about my connection being down precisely when I don't want it to be (Virgin Media, I'm looking at you late at night here). And although the initial outlay might be high, that will come down compared with subscribing to cloud space, even if it doesn't quite level out.
So much depends upon how you work. I'm connected to a clients network. I can't copy files and copy/paste in general is iffy. I can save files to OneDrive on the client PC and a few seconds later, they're available for me to use in my office. Similarly with OneNote, I can work in 2 places at once.
If I fire up my laptop, all the files are ready for me. It's a lot easier than the old days of network shares and trying to keep files synched between machines and locations.
I can imagine if you just work from one location on one network then OneDrive is more trouble than it's worth. Just not in my situation.
That said, I have a VM that automatically downloads everything and is backed up nightly!
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