As organizations generate more digital content every day, managing storage inside SharePoint Online has become both a financial and operational challenge. Large files, especially videos and project archives, quickly inflate costs and complicate migrations. Businesses need a smarter approach – one that reduces expenses without interrupting users.
Real-time archiving delivers exactly that.
This article explains how modern SharePoint archiving solutions help businesses cut storage costs, overcome migration barriers, and protect critical data – without changing how employees work.
The Rising Cost of SharePoint Online Storage
Microsoft charges $0.20 per GB per month for SharePoint Online storage. At first glance, that may seem affordable. But when you scale into terabytes, the numbers grow fast:
- 1 TB = $200/month
- 10 TB = $2,000/month
- 25 TB = $5,000/month
The 25TB Storage Cliff
SharePoint Online has what many call the 25TB cliff. Businesses must purchase storage in 25TB increments:
- Need 24TB → pay for 25TB
- Need 26TB → must pay for 50TB
Even if you exceed the limit slightly, you’re forced to double your storage purchase. For growing enterprises with video libraries, engineering documents, and historical records, this becomes a serious budget issue.
What Is Real-Time Archiving?
Real-time archiving moves inactive or large files to secure, lower-cost storage while keeping them accessible inside SharePoint.
Here’s the key difference: instead of deleting or relocating files, the system replaces them with a stub file – a tiny placeholder that preserves the original location and user experience.
Unlike traditional backup solutions that only protect data, or Microsoft’s cool storage that disrupts access, modern real-time archiving combines both: enterprise-grade backup protection AND intelligent storage optimization through stubbing.
For example, a folder that was 174KB was reduced to just 114 bytes per file after stubbing.
That dramatic reduction happens because the actual file is securely archived, and only a lightweight reference remains inside SharePoint.
To users, nothing changes. They click the file exactly as before, and it retrieves instantly from the archive.
Why Traditional Solutions Don’t Solve This Problem
Most organizations already have SharePoint backup in place. That’s critical – but it doesn’t address storage costs.
Standard backup solutions duplicate your data. You’re still paying Microsoft $0.20 per GB per month for all that active storage.
Microsoft’s “cool storage” moves files to cheaper tiers. The problem? It relocates files out of their original folders. Users lose easy access. Workflows break. Links fail.
Real-time archiving with stubbing is different.
It backs up your data securely, then replaces the original files with tiny stub pointers. Your SharePoint storage shrinks dramatically, but files stay exactly where users expect them.
This is the only approach that delivers:
- Enterprise-grade data protection
- Massive storage cost reduction
- Zero user disruption
Right now, only a handful of commercial solutions offer this capability. It’s not just archiving. It’s not just backup. It’s both – working together seamlessly.
How Stubbing Removes the Storage Barrier
One of the biggest obstacles preventing companies from migrating to SharePoint Online has been storage cost. Organizations with large file servers – especially those storing videos, training content, or engineering assets – often hesitate due to the expense.
Real-time archiving changes the equation.
By reducing file sizes inside SharePoint to mere bytes, companies dramatically lower their active storage footprint:
- Businesses avoid hitting the 25TB cliff
- Monthly storage costs drop significantly
- Migration projects become financially viable
Companies that previously couldn’t afford to move to SharePoint Online can now migrate confidently because stubbing removes the storage cost barrier.
Video Files: A High-Value Use Case
Video content is one of the biggest storage consumers in SharePoint. Training recordings, compliance documentation, marketing media, and internal communications videos can easily consume terabytes.
Unlike text documents or spreadsheets, videos are large by nature – and often accessed occasionally rather than daily.
This makes them ideal candidates for archiving.
With real-time archiving:
- Videos move to cost-efficient storage
- SharePoint retains a small stub file
- Users access videos normally via browser or Teams
- Storage consumption drops dramatically
Because videos “eat up” storage aggressively, even archiving a portion of them can delay or completely avoid expensive storage expansions.
Set It and Forget It: Policy-Based Automation
Modern archiving solutions handle everything through intelligent policies. IT teams don’t need to manually identify files or maintain ongoing processes.
Policies run automatically. Typically on a daily schedule, the system scans your SharePoint environment and applies configured rules.
Files are archived based on criteria you set:
- File age (archive anything older than 90 days)
- File type (target large video files first)
- Folder location (archive specific departments)
- File size (prioritize anything over 100MB)
New files get managed automatically. As employees create content, the system continuously evaluates new files against your policies. A video uploaded today gets automatically stubbed 90 days later – no manual action required.
This approach means:
- IT teams save countless hours
- Storage costs remain predictable
- Users never experience disruptions
- Your SharePoint environment stays lean
Why Stubbing Beats Microsoft’s Cool Storage
Microsoft offers cool storage to reduce costs. On the surface, it seems like an easy win. In practice, it creates more problems than it solves.
Microsoft’s Cool Storage:
- Moves files to cheaper tiers
- Relocates files out of original folders
- Users lose easy access
- Links and workflows break
Real-Time Archiving with Stubbing:
- Files stay exactly where they are
- Folder structure remains intact
- Links continue working
- Collaboration is unaffected
The user experience is the critical difference.
With cool storage, employees notice the change. They search for archived content. They wonder why files “disappeared.” IT fields support tickets.
With stubbing, employees notice nothing. They click a file, it opens. Behind the scenes, the stub retrieves it instantly from secure archive storage.
This is why stubbing is superior:
- Cost savings of archiving
- No usability problems
- Enterprise-grade backup protection included
For organizations that value efficiency and user productivity, stubbing is the clear winner.
Zero Disruption to Users
One of the most common concerns with archiving is usability. Employees resist tools that change workflows.
Modern SharePoint archiving solutions eliminate this problem:
No requirements:
- No client software
- No additional plugins
- No complicated training
Works seamlessly across:
- Web browser access
- Desktop OneDrive sync
- Mobile devices
- Microsoft Teams integration
Users continue working exactly as before. Files open normally. Links remain intact. Collaboration is unaffected.
Behind the scenes, storage optimization happens in real time.
Real-World Example: 10TB Video Library
Consider a mid-sized organization with extensive training content:
Before Archiving:
- 10TB of video files in SharePoint
- Monthly cost: $2,000
- Annual cost: $24,000
After Implementing Stubbing:
- Videos archived and stubbed
- Active storage reduced to under 2TB
- Monthly cost: $400
- Annual cost: $4,800
Result: $19,200 annual savings
- Zero user disruption
- All videos still accessible in original folders
- Enterprise-grade backup protection maintained
This isn’t hypothetical. It’s the kind of savings businesses achieve every day by combining backup protection with intelligent storage optimization.
Avoiding Unnecessary Storage Purchases
Let’s consider another real-world scenario.
A company is approaching 25TB of SharePoint storage. Without optimization, they must purchase another 25TB block – doubling costs overnight.
Instead, by archiving inactive project folders and video libraries:
- Active storage drops below the threshold
- The 25TB expansion is avoided
- Budget is preserved
Over time, these savings compound month after month.
Since SharePoint charges $0.20 per GB per month, even reducing 5TB saves:
5,000 GB × $0.20 = $1,000/month = $12,000/year
For large enterprises, the impact is significantly greater.
Data Protection and Compliance Benefits
Beyond cost reduction, real-time archiving strengthens data protection.
Archived files are stored in secure, compliant environments that support:
- Retention policies
- Legal hold requirements
- Encryption at rest
- Audit logging
Because files remain logically in their original SharePoint location via stubs, organizations maintain structured access controls and governance policies.
This approach ensures:
- No broken links
- No accidental deletions
- No loss of historical data
It combines financial efficiency with compliance assurance.
Enabling Long-Term Scalability
Organizations don’t stop creating data. Digital growth is continuous. Marketing teams produce content. HR stores onboarding materials. Engineering teams upload design revisions. Leadership records town halls.
Without optimization, storage growth becomes predictable – and expensive.
Real-time archiving provides a sustainable model:
- Frequently accessed files stay active
- Inactive files move automatically
- Users experience no disruption
- Costs remain controlled
This ensures SharePoint Online remains scalable for years to come.
Why Businesses Are Adopting Real-Time Archiving
Companies are increasingly turning to advanced SharePoint archiving solutions because they solve three major problems simultaneously:
- Reduce storage expenses
- Enable SharePoint migration
- Protect user productivity
Instead of forcing IT teams to manually manage storage or ask employees to delete content, automation handles the heavy lifting.
The result is a cleaner, leaner SharePoint environment without sacrificing access.
Final Thoughts
SharePoint Online is a powerful collaboration platform – but unmanaged storage growth can quickly turn it into a financial burden.
With storage priced at $0.20 per GB per month and the 25TB purchasing cliff forcing large incremental commitments, businesses need a smarter approach.
Real-time archiving offers that solution.
By replacing large files with lightweight stubs – sometimes reducing folders from 174KB to just 114 bytes per file – organizations can dramatically shrink their storage footprint.
Video libraries become manageable. Migration becomes affordable. Users remain uninterrupted across browser, OneDrive, mobile, and Teams.
But here’s what makes this approach truly different:
Traditional backup solutions protect your data but don’t reduce costs. Microsoft’s cool storage reduces costs but disrupts users. Only real-time archiving with stubbing delivers both: enterprise-grade protection AND massive cost savings, without changing how people work.
