Why SharePoint Storage Limits Are Killing Your Budget

And what smart organizations are doing about it

Budget Impact

July 2025 • 6 min read

SharePoint storage limits hit when you least expect them. Here's how organizations are getting blindsided by costs and what you can do to avoid the trap.

The Storage Limit Surprise

Most Microsoft 365 plans include a base amount of SharePoint storage:

  • Business Basic/Standard: 1TB + 10GB per user
  • Enterprise plans: 1TB + 10GB per user
  • Additional storage: £0.18 per GB per month (£180/TB/month)
Example: A 50-user organization gets 1.5TB included (1TB + 50 × 10GB). That sounds like a lot until you start storing design files, videos, or archived documents.

How Quickly Limits Are Hit

Real scenarios from our experience:

Marketing Agency

25 users, 1.25TB included storage

  • • High-res images: 800GB
  • • Video files: 600GB
  • • Client projects: 300GB

Total: 1.7TB (over limit by 450GB)

Additional cost: £81/month

Engineering Firm

100 users, 2TB included storage

  • • CAD files: 1.2TB
  • • Project archives: 900GB
  • • Documentation: 400GB

Total: 2.5TB (over limit by 500GB)

Additional cost: £90/month

The Hidden Storage Killers

1. Version History

SharePoint keeps versions of every file. A 100MB PowerPoint with 20 versions = 2GB of storage. Most organizations don't realize versions count toward their limit.

2. Deleted Items

Deleted files stay in the recycle bin for 93 days, still counting toward your storage quota.

3. Large Files

Design files, videos, and media assets grow faster than document storage. A single 4K video can be 500MB-1GB.

4. User Behavior

Users upload first, organize later. Duplicate files, poor folder structure, and "just in case" storage habits add up quickly.

⚠️ The Versioning Trap

One client discovered that 40% of their storage was consumed by file versions. A single Excel file had 150 versions totaling 300MB.

What Happens When You Hit the Limit

  • Upload blocking: Users can't add new files
  • Sync failures: OneDrive stops syncing properly
  • User frustration: Productivity drops as people can't access files
  • Emergency purchasing: IT has to buy expensive storage add-ons immediately

Traditional Solutions (And Why They Fall Short)

Buy More SharePoint Storage

Cost: £180-225/TB/month
Problem: Doesn't solve the underlying issue - you'll hit limits again

Clean Up and Delete Files

Cost: Staff time + potential data loss
Problem: Users resist deleting "important" files

Move to OneDrive Personal

Cost: Compliance and security risks
Problem: Files scattered across personal accounts

The Smart Alternative

Forward-thinking organizations are adopting a hybrid approach:

  • Keep collaborative documents in SharePoint (Word, Excel, PowerPoint)
  • Move bulk storage to Azure Blob Storage (media, archives, large files)
  • Maintain familiar interfaces so users don't need retraining
File Type Best Storage Why
Office Documents SharePoint Co-authoring, version control, workflows
Design Files Blob Storage Large files, infrequent collaboration
Media Assets Blob Storage Size, cost, streaming capabilities
Archives Blob Storage Long-term storage, cost efficiency

Real Results

"We went from paying an extra £150/month for SharePoint storage to £25/month for blob storage. Same files, same access patterns, 83% cost reduction."

IT Director, 75-person consulting firm