Reducing SharePoint Storage Costs with M365 Archive and Versioning
Yes, you can lower SharePoint Storage costs with M365 Archive and Automatic Versioning. If storage grows too fast, it can cause problems for rules and safety. You might lose data or break rules. Many groups have trouble with big media files and too much content. Too many versions also make things slow and cost more money. You can move old data to a cold archive tier. You can also limit how many versions you keep. This can save up to 75% of costs.
Key Takeaways
Look at your SharePoint storage often to see which sites use the most space and find problems early.
Keep fewer file versions to save space but still keep important history.
Put old or unused sites in Microsoft 365 Archive to lower storage costs by up to 75%.
Use retention policies and automatic versioning to protect files and follow rules without using too much storage.
Check and change your storage rules every few months to keep SharePoint neat and save money.
Check SharePoint Storage
Analyze Usage
To save money, you need to know how SharePoint Storage grows. Go to the SharePoint Admin Center first. This tool shows which sites use the most space. Look at the 'Storage Used (GB)' for each site. You can see patterns and find sites that need help.
Tip: Try PowerShell scripts to make your own reports. These reports show sites that are almost full. You can export this data. Use Power BI to look at it more closely.
You can use other tools like Syskit Point too. These tools show pictures and let you set alerts for storage limits. Checking often helps you find problems early. Teams meeting recordings and Stream videos also use SharePoint Storage. Add these to your check to see everything.
Find Inactive Content
Old files and versions can fill up SharePoint Storage fast. Version history uses more space because each version is a full copy. For example, a 2GB file with 100 versions can use 200GB. You should find old content and remove it to save space.
Watch storage in all SharePoint and Microsoft 365 services.
Check for users and groups not using storage. Remove them to free up space.
Set storage limits on sites to stop fast growth.
Use retention rules to delete or archive old files.
Move old files to Microsoft 365 Archive. This keeps them easy to find and safe but costs less.
Note: You cannot always turn off versioning. Instead, manage versions to save space and still work together.
If you do these things, you can control SharePoint Storage and avoid surprise costs.
Set Automatic Versioning
Automatic versioning in SharePoint helps you use less storage. It also keeps your documents safe. You can set limits on versions and use retention policies. This saves money and helps you follow rules. This part will show you how to do it.
Limit Versions
You can set limits for versions in SharePoint document libraries. This helps you save space and still get back old files. There are two ways to manage versions: automatic and manual.
The automatic setting uses a smart system. It keeps more new versions and fewer old ones. This saves space but lets you get back important changes.
Manual settings let you pick how many versions to keep. You can also choose how long to keep them. You can set a number or a time limit for versions.
Site admins can change the default settings. This means you can set different limits for each site or library.
Reports help you see how much space versions use. You can also see what happens when you delete old versions.
You do not have to pick one number for version limits. Most groups do better with flexible rules.
Tip: Pick the 'Automatic' versioning option to make things easier. This keeps your storage neat and saves you from doing extra work.
Microsoft says the 'Automatic' versioning option is best. It uses smart rules to keep important versions and remove small changes. This can save up to 96% of storage in six months. One company saved half their storage in one library. The automatic option means you do not need to write scripts or check things by hand. You can use these limits for your whole group or just some sites.
Apply Retention Policies
Retention policies help you keep important files as long as you need. They also help you follow legal rules. When you set a retention policy, SharePoint puts copies of changed or deleted files in a hidden folder called the Preservation Hold library. This folder uses up your SharePoint Storage.
Retention policies make sure you keep the first copy, even if someone changes or deletes it.
The Preservation Hold library stops files from being deleted for good until the time is up.
If you use too much storage, you might have to buy more.
Retention policies help you follow rules and find files for legal reasons.
These rules do not save your settings or permissions. For full backup, you may need other tools.
Note: If you do not set version limits or retention policies, you may pay more for storage. You could also have security or legal problems. You might not find or keep the files you need.
Best Practices for User Education and Governance
To get the most from automatic versioning and retention policies, you should teach your users and set clear rules.
Turn on versioning for all new libraries. This helps users work together and keeps files safe.
Tell users if versioning is off. They need to know they cannot get back old versions.
Be careful with version limits. Keeping all big versions uses little space, but you may need strict rules for legal reasons.
Teach users how versioning works with autosave and co-authoring. Good talks help stop confusion.
Explain who can see, fix, or delete versions. Users should know what they can do.
Warn users about uploading big files, like PSTs. These can fill up storage fast.
Show users how to find and fix old versions. This helps them fix mistakes by themselves.
You should also use reports and checks to see if your rules work well. PowerShell reports and dashboards help you see problems early. User feedback helps you make your rules better over time.
Use M365 Archive
Move Old Data
You can save money by moving old data to Microsoft 365 Archive. This lets you put sites you do not use much into colder storage. You pay less for archived data than for active storage. The steps are easy and help you stay within your SharePoint Storage limits.
Here are steps to archive sites you do not use often:
Go to the SharePoint admin center.
Pick the sites you want to archive. These can be team sites, communication sites, or sites linked to Teams.
Click the archive option to move these sites to Microsoft 365 Archive. The sites stop using your active storage.
You can also use PowerShell with the
Set-SPOSiteArchiveStatecommand or Microsoft Graph API to archive or unarchive sites.Remember, you cannot archive OneDrive accounts by hand. The service may archive them after 93 days if the account is not licensed.
Tip: Archiving sites gives you more active storage and helps you save money. You only pay for archived storage if you use more than your license allows.
Microsoft 365 Archive costs $0.05 per GB each month for archived data. This is 75% less than active SharePoint Storage. After March 31, 2025, you do not pay to reactivate sites. Archiving is a good way to save money on lots of old content.
Manage Archived Files
After you archive sites, you need to manage them for a long time. Microsoft 365 Archive keeps all metadata, permissions, and compliance features. You can set up rules to keep your data safe and follow laws.
Use tools like Preserve365 to keep files safe for many years. This makes sure files stay readable and trustworthy.
Move files to new formats so old file types do not cause problems.
Set labels and rules to control how long you keep archived data.
About 30% of data in Microsoft 365 needs to be kept for more than seven years. Automation helps you do this without mistakes.
Note: Doing archiving by hand can cause mistakes and risk your data. Automated tools help keep your data safe and lower risks.
You can get back archived sites when you need them. Admins can turn sites back on from the SharePoint admin center. Archived sites show up in a special section and keep all their settings. You can use eDiscovery to find archived data for legal reasons.
Archiving makes searching and finding files faster. Automated management keeps records safe and easy to get. This helps you follow rules and makes it easier to find important data for checks or reports.
Monitor and Update Policies
Track Storage Trends
You need to watch your SharePoint Storage closely. Check how much space you use and have left. Look at how storage grows over time. This helps you know when you need more space or a cleanup. Use Storage Metrics reports for each site. These reports show which files use the most space. You can focus your cleanup on these files.
PowerShell scripts help you check storage use. Automation finds big or unused files fast. Tools like AvePoint or tyGraph give extra details. These tools show which files are old or not needed. They also help you see license use and which files matter. Watching these numbers helps you decide what to archive, delete, or keep.
Tip: Make alerts or dashboards to warn you when storage is almost full. This helps you fix problems before they get worse.
Review Regularly
Check and change your storage rules every few months. Make this part of your plan. Many groups have a "SharePoint Cleanup Day" each quarter. On this day, teams work together to find and remove old or useless files. Meetings help teams talk about what they did and fix problems. This keeps your rules up to date and working well.
Follow these steps to keep things clean:
Check and empty the SharePoint Recycle Bin often to save space.
Teach users how to use the Recycle Bin and why it helps.
Be careful when deleting things forever, you cannot get them back.
Use PowerShell to manage the Recycle Bin and clean up faster.
Set rules to remove unused files automatically.
Keep backup and restore plans ready in case something goes wrong.
Make a team to watch over these jobs. Train users and admins on your rules. Use tools to check if people follow the rules and find problems early. Change your rule documents when your needs change. Good talks and regular checks help everyone follow the rules.
You can save money on storage by using M365 Archive with Automatic Versioning. Check your retention policies often to delete old files, shorten version lists, and move unused sites to the archive.
Plan regular times to look at your rules so storage does not fill up without you knowing.
Let automated tools help you clean up and follow the rules.
Many groups have saved money by archiving files they do not use and keeping only the versions they need. If you manage your storage early, your data stays safe and your storage works well.
FAQ
How do you check which SharePoint sites use the most storage?
First, open the SharePoint Admin Center. Click on "Active sites" to see a list. Sort the list by "Storage used (GB)." This shows which sites use the most space. Use this list to decide which sites need cleanup or archiving.
Can you restore a site from Microsoft 365 Archive?
Yes, you can bring back an archived site. Go to the SharePoint Admin Center and find the site. Click "Reactivate" to move it back to active storage. The site comes back with all its settings and permissions.
What happens to file permissions when you archive a site?
Microsoft 365 Archive keeps all file permissions and metadata safe. When you restore a site, users still have their access. You do not have to set up permissions again after archiving or restoring.
How often should you review your versioning and retention policies?
Check your policies every three to six months. Set reminders so you do not forget to review them. Change your rules if your storage needs or compliance rules change. This helps keep your storage safe and working well.