Optimizing SharePoint Storage: A Smarter Path to Efficiency and Compliance

A Practical Framework for Sustainable Microsoft 365 Administration

One of the ongoing challenges for Microsoft 365 administrators is the ever-growing tide of data within the SharePoint environment. SharePoint is a powerful collaboration tool, but storage growth becomes a growing concern. As teams create and edit documents, SharePoint quietly stores every version. Over time, these versions pile up, consuming space and driving costs.

This guide breaks down three common strategies for managing SharePoint storage and explains why proactively reducing file version limits is the smartest, most sustainable move.

The Hidden Cost of Versioning

SharePoint’s default versioning settings often retain hundreds of versions per file — far exceeding the needs of most workflows. Many organizations remain unaware until they encounter unexpected billing or performance degradation. Below are strategic options to address this.

Option 1: Add More Space

The first and most obvious solution is simply to purchase more storage. On the surface, this seems easy: Microsoft provides options to buy additional storage as needed, and users can keep working without disruption.

• Pros: No changes to user experience; seamless continuity.
• Cons: Ongoing and escalating costs; no incentive to fix underlying inefficiencies; risk of “storage sprawl.”

This method addresses symptoms but not the root causes and offers limited long-term value.

Option 2: Proactively Reduce File Version Limits and Delete Excess Versions

A more strategic approach involves auditing SharePoint libraries, adjusting versioning thresholds, and removing outdated versions through automated scripts.

• Pros: Immediate and long-term cost savings; reduces unnecessary clutter; improves performance; creates a culture of digital responsibility.
• Cons: Requires initial planning and communication; potential pushback from users who fear “losing” document history.

Option 2 offers a strategic, cost-effective, and future-ready approach to managing SharePoint storage by balancing operational efficiency with compliance and user experience.

Direct Cost Savings

By reducing the number of stored file versions, organizations gain immediate control over storage consumption. In many cases, this results in reclaiming tens or even hundreds of gigabytes overnight. These savings are not only substantial, but they are also repeatable thus helping avoid ongoing costs for unnecessary storage.

Improved Performance and Manageability

Fewer versions lead to faster search results, quicker backups, and more streamlined libraries. IT administrators benefit from simplified maintenance, while end users experience faster access and reduced lag when working with documents.

Promoting Digital Hygiene

Establishing thoughtful versioning limits encourages intentional document management across the organization. It reinforces a culture of efficiency, sustainability, and cost awareness — empowering teams to be more mindful of their digital footprint.

Script-Driven Automation: A Modern Approach

Running cleanup scripts is not only effective; it’s automatable. PowerShell and Microsoft Graph provide robust tools to audit libraries, apply new versioning limits, and remove excess versions. These actions can be scheduled, tracked, and reported to ensure transparency and compliance.

Addressing Common Concerns

Some users may worry that reducing versioning could risk losing important information. However, most workflows require only 10–20 previous versions. Exceptions can be made for mission-critical files. Clear communication is key: less clutter, lower costs, and a more agile organization.

Regulatory and Compliance without Compromise

Strategic versioning does not undermine regulatory obligations. By aligning version limits with retention policies, organizations retain what’s necessary for audits and legal requirements — without storing redundant copies. Collaboration with compliance teams ensures alignment with internal and external standards.

Option 3: Microsoft 365 Archive or Third-Party Backup Solution

For organizations seeking a more advanced approach to storage optimization, Microsoft 365 Archive provides a powerful way to offload inactive or legacy SharePoint content into lower-cost archive tiers. By relocating files and libraries that are rarely accessed, you can significantly reduce primary storage consumption — without sacrificing long-term retention or compliance.

This strategy supports both agility and accountability. Archived content remains secure and retrievable, ensuring critical information is preserved even as daily access needs decline. However, Microsoft 365 Archive is not universally applicable: only select SharePoint site templates are currently supported, which may limit its use depending on your environment’s architecture.

To overcome these constraints and enhance data protection, many organizations pair Microsoft’s native archiving with third-party backup platforms like Datto Backup. These solutions offer extended retention, granular restore capabilities, and coverage for unsupported site templates — creating a more resilient, compliance-ready framework.

Implementation Roadmap: Making Option 2 Work for You

To optimize SharePoint versioning and reduce storage overhead, follow this practical sequence:

• Audit Current Settings: Review your SharePoint libraries and document existing versioning limits. Flag libraries with excessive version counts.
• Set Realistic Limits: Establish a default range — typically 10–30 versions per file. Use PowerShell scripts to apply these limits, as they cannot be set via the SharePoint Admin Center or at the document level. Adjust for departments with specialized needs.
• Communicate the Change: Notify users of upcoming updates, emphasizing the benefits of improved efficiency and cost control.
• Automate Cleanup: Use PowerShell or Microsoft Graph to delete versions exceeding your new thresholds. Document and share results for transparency.
• Monitor and Refine: Continually assess versioning policies, storage metrics, and user feedback to fine-tune your strategy.

Ready to Take the Next Step?

Collaborating with Citrin Cooperman’s Digital and Cloud Services team gives you access to deep expertise and tailored guidance. Our Microsoft professionals deliver strategic evaluations and actionable insights to help you choose the right mix of archiving and backup solutions, ensuring compliance, continuity, and cost-efficiency.

Let us help you build a smarter, more sustainable data strategy. Reach out today to explore your options and unlock your organization’s full potential.