As businesses increasingly rely on cloud solutions for collaboration and document management, many have adopted SharePoint Online to store and organize their data. However, as data grows exponentially, storage costs can spiral out of control. In this guide, we’ll cover how to reduce SharePoint storage usage, why it's critical to manage your data lifecycle, and practical solutions for archiving and optimizing data.
Did you know that by archiving inactive files, you can cut storage costs by 75%, dropping from $0.20 per GB to as low as $0.05 per GB? For businesses managing terabytes of data, these savings can add up quickly!
Let’s dive into the strategies and tools that can help reduce costs while maintaining data access and compliance.
Why Reduce SharePoint Online Storage?
The default SharePoint Online storage allocation depends on your Microsoft 365 licensing plan. Businesses receive:
- 1 TB of base storage per organization, plus
- 10 GB of additional storage for each licensed user.
However, if your storage needs exceed this limit, Microsoft charges about $0.20 per GB for additional storage, which can become costly over time. Learn more from Microsoft's official guidelines on SharePoint Online Limits.
For companies managing terabytes of data, implementing data archiving, cleanup, and lifecycle management can lower these costs significantly. By moving inactive files to lower-cost storage options, you can reduce costs to $0.05 per GB while still maintaining secure access to your data.
How to Reduce SharePoint Online Storage
Here are actionable strategies to reduce storage without compromising your business operations:
1. Audit and Clean Up Your Data
Files accumulate quickly, and many of them become irrelevant over time. Regular audits can help identify and remove:
- Duplicate files
- Unused or outdated project documents
- Temporary files
Tip: Set up automated alerts to notify administrators when a site exceeds a certain percentage of allocated storage.
2. Archive Inactive Data
Data that is no longer actively used can be moved to an archive. Archiving doesn’t mean losing access; instead, it reduces costs by moving files to less expensive storage tiers.
Microsoft 365 offers several ways to archive data:
- Implement archiving policies in the Microsoft 365 Compliance Center.
- Use Azure Blob Storage for large-scale, long-term archiving needs. See Azure Blob Storage Pricing for details.
Archiving is particularly important for businesses with compliance requirements, where data retention is mandated but rarely accessed.
Want to learn more about maintaining business compliance? Read our guide on Microsoft Teams Premium features for enhanced security.
3. Compress and Optimize Large Files
Large media files such as videos, high-resolution images, and design files can consume significant storage space. Consider:
- Compressing files to reduce their size.
- Moving large files to OneDrive or Azure for scalable storage solutions.
For businesses that rely heavily on media, implementing a file optimization policy can help limit storage usage across your sites.
4. Manage Data Sprawl with Governance Policies
Data sprawl occurs when files are unnecessarily duplicated across multiple platforms like Teams, SharePoint, and OneDrive. To prevent this:
- Implement data governance policies to control file duplication.
- Use version control to reduce multiple versions of the same document from being saved.
Governance policies are key to long-term data lifecycle management. Learn more about managing shared resources like email in our post on Shared Mailboxes in Microsoft 365.
Understanding Data Lifecycle Management
Data lifecycle management refers to the process of controlling data from its creation through to archiving or deletion. By defining clear retention and disposal policies, businesses can:
- Reduce storage usage by removing outdated or unused data.
- Stay compliant with regulatory requirements (e.g., GDPR, HIPAA).
- Enhance security by restricting access to sensitive data.
Lifecycle management involves:
- Data Classification: Categorizing data based on its sensitivity, usage frequency, and retention needs.
- Retention Policies: Automatically archiving or deleting files after a set period.
- Access Control: Limiting access to prevent data sprawl and unauthorized modifications.
Automating data management with tools like Microsoft Compliance Manager or Power Automate helps maintain an organized, efficient storage system without manual effort. For more details on compliance tools, visit Microsoft Compliance Overview.
Tools for Monitoring and Managing SharePoint Storage
Microsoft 365 provides built-in tools to help businesses monitor and manage storage:
- Storage Analytics Dashboard: View storage usage by site, file type, and trends.
- Compliance Center: Set up retention labels and archive policies.
- eDiscovery Tools: Identify and manage sensitive data for compliance purposes.
Common Questions About SharePoint Online Storage
Q: What happens if I exceed my SharePoint storage limit?
When storage limits are exceeded, users may face restrictions on file uploads and modifications. Admins will need to either free up storage or purchase additional space.
Q: How can I reduce storage without deleting important files?
Archiving, compressing large files, and migrating data to alternative storage (e.g., Azure) can help reduce storage usage without deleting critical information.
Q: Is archiving secure?
Yes. Microsoft ensures archived data is encrypted and protected by security features like multi-factor authentication (MFA) and data loss prevention (DLP).
Benefits of Reducing SharePoint Online Storage
By optimizing SharePoint storage, your business can:
- Lower operating expenses by reducing reliance on costly storage.
- Enhance performance by minimizing data clutter.
- Improve compliance and security through proper data management.
Looking for more guidance on managing IT infrastructure efficiently? Check out our post on choosing the right IT service provider.
How We Can Help
At Always Beyond, we provide managed IT services designed to optimize your Microsoft 365 environment. From data lifecycle management to archiving and storage planning, we tailor solutions to meet your business needs.
Looking for expert advice? Our team can provide a free storage audit consultation to identify savings opportunities and enhance your data management strategy.
Reducing SharePoint Online storage is essential for controlling costs, improving performance, and maintaining compliance. By auditing your data, archiving inactive files, and implementing data lifecycle management policies, you can significantly lower your storage expenses while improving your business operations.
