Automatic Archiving with Microsoft 365
Options, Costs, and Limitations for Sharepoint Files
- Since July 2026, Microsoft 365 Archive has supported the archiving of individual SharePoint files. Users with edit permissions can archive eligible files, and users with read permissions can reactivate them. Microsoft is currently developing two key policy approaches for automatic file archiving. One involves archiving via Microsoft Purview retention policies and retention labels, and the other involves SharePoint File Archive policies that focus on files that are actually inactive.
- Purview can automatically move files to Microsoft 365 Archive based on retention policies. According to current Microsoft documentation, the archiving action requires a Microsoft 365 E5 license.
- Microsoft positions SharePoint Advanced Management as a standalone solution for automating archiving processes in conjunction with Microsoft 365 Archive. Archive storage costs will continue to be billed on a pay-as-you-go basis.
- When it comes to complex storage optimization, there are still differences compared to specialized archiving solutions. Criteria such as file size, path, and custom SharePoint metadata, version consolidation, freely selectable archive storage, or direct download from the archive remain relevant distinguishing features.
Archiving in Microsoft 365 Archive now extends down to the level of individual SharePoint files. The key is having rules that reliably identify appropriate content and archive it on a regular basis. What options do Microsoft Purview and custom scripts offer, what costs and licenses need to be considered, and what are the limitations?
What’s Changing with File Archiving
Until now, Microsoft 365 Archive could only archive entire SharePoint sites. In addition to entire SharePoint sites, Microsoft 365 Archive has also supported the archiving of individual files since July 2026. This allows companies to move older content to the archive while continuing to use the associated project areas and departmental repositories. This significantly expands the options for storage optimization.
However, manually selecting files is not enough for a company-wide strategy. Rules are needed that reliably identify appropriate content and archive it on a regular basis. The archiving action in Microsoft Purview now provides an automated way to do this. This article explains how Microsoft 365 Archive works in general and when it’s worth using: Microsoft 365 Archive: Benefits, Limitations & Cost-Saving Potential. This post focuses on the automatic selection and archiving of files.
Why Automatic File Selection Is Crucial
On actively used SharePoint sites, current working documents are often stored right next to documents that no one has edited in years. Older Office documents that have accumulated over time—such as PowerPoint presentations and Word files—are particularly worth preserving. High-resolution images, embedded media, and fonts can quickly make individual files large. The version history often plays an even bigger role. A simplified calculation: 25 versions, each 20 MB in size, add up to 500 MB for a single file. For 1,000 similar files, that amounts to approximately 500 GB. Actual version sizes may vary. However, this example illustrates why storage optimization should consider not only the current file size but also the version history that has accumulated over the years.
A suitable archiving rule could, for example, target large PowerPoint and Word files that have remained unchanged for several years in completed project areas. Effective rules combine several criteria for this purpose, such as file type, size, age, storage location, project status, and searchable metadata. Reference documents and knowledge bases that are still needed should be specifically excluded.
What Automation Options Microsoft Offers
As of October 2026, there are two ways to automatically archive files in Microsoft 365 Archive: Microsoft Purview and custom scripts using Microsoft Graph. SharePoint Advanced Management (SAM) currently archives only entire sites and is therefore not included.
Purview: Archiving Using Retention Policies and Retention Labels
Microsoft Purview can automatically move inactive SharePoint files to Microsoft 365 Archive. To do this, Microsoft adds an archiving action to Retention Policies and Retention Labels (Purview documentation on retention settings). The action is not enabled by default: Existing policies and labels will not be archived until the action is enabled.
For example, the archiving action can be used to specify that a document be retained for a total of ten years but be archived after just three years. The creation date or the date of the last modification to the file can serve as the starting point. Retention policies and legal holds remain in effect even after archiving. Event-based retention does not support file archiving.
If archiving is not intended to apply to all files on a site, but rather only to specific document groups, retention labels can be assigned automatically. To do this, Microsoft Purview uses search queries based on KQL and searchable properties. Depending on the available properties, criteria such as file type, file size, creation date, modification date, author, or location can be included in the selection. For example, a rule could be created to specifically identify large PowerPoint files and automatically assign them an appropriate retention label. This label then determines when the file is archived.
Automatic label assignment offers significantly more flexibility than purely time-based archiving, but it also entails additional conceptual and administrative effort. The archiving logic depends on the retention model. An item can have only one retention label. Those who already use an established purview and records management model can easily integrate the archiving process into their governance processes. If the primary goal is to quickly and selectively free up SharePoint storage, this approach is comparatively time-consuming.
According to Message Center MC1472601 (Roadmap ID 562345) in early October 2026 and is scheduled to be completed in November 2026. Until then, the option may not yet be available in every tenant.
SharePoint Advanced Management: currently available only for sites
The Microsoft Roadmap calls for additional archiving policies via SharePoint Advanced Management (SAM) in the fourth quarter of 2026. Microsoft describes SAM as a separately licensed offering that can automate archiving processes in conjunction with Microsoft 365 Archive. One possible—though as yet unconfirmed—vision is centrally managed file archiving within SharePoint administration. This could include archiving rules that do not first need to be transferred to a retention policy. Specific filters, exceptions, and verification procedures cannot yet be definitively deduced from the announcement. Additional archiving based on actual file usage is also planned. The current roadmap does not specify a firm date for general availability. The final scope of functionality is also still undecided.
Using Your Own Scripts as an Alternative Approach
Companies can also identify items to be archived using their own scripts and trigger the archiving process via interfaces. Microsoft Graph provides the following endpoint for this purpose "driveItem:archive" (Microsoft developer guidance). It archives individual files immediately and entire folders in the background, but is currently only available in the beta version. Beta interfaces are subject to change and should be used with caution in production environments.
The advantage: You can precisely replicate your own selection rules, approvals, and existing processes. The trade-off is a new operational task. Selection rules, logging, error handling, and monitoring must be developed and maintained on an ongoing basis. It may be worth it for the one-time reduction of large legacy data sets. For a long-term strategy, however, development and operation must be factored into the overall cost calculation.
Automation remains a governance task
The larger the SharePoint environment becomes, the more the focus shifts—not to the technical aspects of archiving itself, but to the quality of the selection rules. The real challenge rarely lies in moving files. It is more difficult to identify the right files, define exceptions, comply with guidelines, and monitor the rules on an ongoing basis.
Table source: Microsoft documentation on retention, Label Policies, Search Properties, and Interfaces. The information regarding SAM are marked as planning status or assumptions.
File type and file size are therefore not fundamental unique selling points of a third-party solution. The difference lies rather in how directly these criteria can be translated into archiving rules and what additional options are available for versions, access, and knowledge utilization.
What Are the Licensing and Storage Costs?
Archive storage and automation licenses are separate cost categories.
Price for archive storage
According to Microsoft 365 Archive pricing model, Microsoft charges for archive storage based on usage at $0.05 per GB per month. Billing is handled through an Azure subscription using the pay-as-you-go model. By comparison, additional SharePoint Standard storage costs $0.20 per GB per month. Costs are incurred only for the portion by which active and archived storage combined exceed the client’s allocated or licensed SharePoint quota. If total usage remains within the quota, no archiving costs are incurred. Applying this to the example above: If the 500 GB are entirely above the quota, they cost approximately $100 per month as additional SharePoint storage and approximately $25 in the archive.
Additional cost factors
In addition to archive storage, the total cost depends on which approach a company chooses:
Purview: The E5 license is required for the archive storage. In addition, retention policies and labels must be designed and maintained on an ongoing basis.
Custom scripts: The focus here is on development, operation, and maintenance. Since the interface is still marked as beta, you should expect changes.
Additional solution: Product licensing, implementation, and operation are required. In addition, storage space is needed in the selected archive destination.
Existing licenses and contracts can significantly affect the outcome. If you’re already using Microsoft 365 E5, you don’t need to budget for an additional license block for Purview archiving. If you’ve already purchased additional storage, you won’t see immediate savings, as the section after the next one shows.
For in-house scripts, development and operation costs must be factored in; for third-party solutions, product licensing, implementation, and operational costs must be considered. Existing licenses can significantly alter the comparison.
How does archiving affect the storage quota?
The Microsoft FAQ on Storage and Quotas clarifies: At the site level, file archiving does not reduce storage consumption. Archived files continue to count toward the site’s storage usage and quota just like active files. At the tenant level, however, storage is reallocated from active SharePoint storage to archive storage. This does not reduce the tenant’s total storage usage, but the cost structure may change.
When do savings actually materialize?
The key factor is how much additional SharePoint storage can actually be canceled or avoided in the future. Storage that has already been licensed or purchased separately does not automatically lead to immediate cost savings; the effects depend on the specific license and contract terms. Therefore, less active storage does not immediately result in a lower bill.
Where Automatic Archiving with Microsoft 365 Archive Reaches Its Limits
In addition to the question of which files should be included in the archive, Microsoft 365 Archive itself imposes certain limits.
Rules Depend on the Retention Model
Purview archiving is part of a retention policy or a retention label. Existing designations and business-specific exceptions must therefore be taken into account from the outset.
Not every file can be archived
According to Microsoft, OneNote files, SharePoint pages, and SharePoint agents, among other items, cannot be archived; as well as files in the “Website Objects” library. Unsupported items remain active even if a policy includes them. Such exceptions should be included in the analysis of archiving candidates to ensure that projected volumes and savings remain realistic.
The storage location also plays a role. According to Microsoft, manual file archiving is currently available only on SharePoint sites. In the announcement regarding Purview archiving, however, Microsoft mentions both SharePoint and OneDrive. Before planning in the Purview portal, you should verify whether the feature is available for OneDrive in your tenant. In Teams, files from standard channels are part of the team’s SharePoint site; for channels with their own sites, a separate check is recommended.
Versions are archived together
Microsoft 365 Archive always archives a file along with all its existing versions. Individual versions cannot be archived separately, and when a file is reactivated, all versions are restored. This ensures that the history remains complete. However, for storage optimization, this means: Even versions that no one needs anymore continue to take up archive storage space. Version cleanup must therefore be planned separately, for example using the version limits in SharePoint.
Reactivation: up to 24 hours wait time
Archived files remain visible in SharePoint but can only be opened after they have been reactivated. Anyone with read permissions can reactivate them. This can be done immediately during the first seven days after archiving; after that, according to archive status information from Microsoft, it may take up to 24 hours. There are no fees for the reactivation itself. The reactivated file subsequently occupies active SharePoint storage again, and after reactivation, a lockout period applies before it can be archived again.
What Archiving Means for Microsoft 365 Copilot
Archived content is not included in Microsoft 365 Copilot's responses. For compliance scenarios, they remain discoverable via Purview-based search and eDiscovery (Compliance features in the Microsoft 365 Archive). They can only be opened after reactivation.
This may be intentional: Microsoft explicitly cites it as an advantage that outdated content no longer dilutes Copilot's responses (Microsoft Adoption). In the case of valuable project or experiential knowledge, however, it must be determined which information should remain active and accessible. Document-based approaches such as NAVOO® Smart Archive address this need: Full texts, summaries, or keywords stored via the stub file can remain available for search and Copilot, provided that indexing and permissions allow it, while the larger original file remains in the archive.
When a Supplemental Archiving Solution Is a Good Idea
For many companies, Microsoft 365 Archive is sufficient. Additional requirements arise when companies:
If you want to reduce version histories as soon as you archive them,
want to use their own archive storage outside of Microsoft 365,
If you want to view the contents of archived files without reactivating them,
would like to keep selected information available to Copilot,
want to know in advance how much storage space can be saved at the file level.
For such cases, there are document-based solutions such as NAVOO® Smart Archive. Rules are defined directly within the solution; the number of versions to be archived can be controlled, and the archive storage can be selected to align with the data strategy. A configurable stub file containing metadata, full-text excerpts, or previews remains in SharePoint; optionally, AI-generated summaries and keywords, as well as transcripts for audio and video files, can also be stored. In everyday use, this means that with the preview function, employees can identify a presentation, check an image, or read a slide without having to restore the original file. The stub file may already be sufficient for research or a quick review. If the original file is needed after all, it can be downloaded directly without first writing it back to SharePoint and taking up storage space there again.
Microsoft 365 Archive provides a native storage tier within Microsoft 365. NAVOO® Smart Archive comes into play where version control, storage location, access without reactivation, and the continued use of knowledge are more important. The right approach depends on information architecture, compliance requirements, storage inventory, and access scenarios.
Conclusion: First the Rules, Then the Tools
With the archiving of individual files beginning in July 2026 and the archiving campaign in Purview set to roll out starting in October 2026, Microsoft 365 Archive has become significantly more appealing for large SharePoint environments. However, this alone does not yet result in an archiving strategy. Ultimately, it is not the archive itself but the rules that determine how much storage space is freed up and how accessible knowledge remains. Therefore, the first step should be to identify the technical, business, and regulatory requirements. Only then can you assess whether Purview archiving, a custom automation solution, or a complementary archiving solution is the right approach.
The article Microsoft 365 Archive. The solution page SharePoint Archiving with NAVOO® Smart Archive.
Arvato Systems helps companies assess the archiving potential of their SharePoint environment and develop appropriate archiving rules.
Frequently Asked Questions About Automatic Archiving
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How can SharePoint files be archived automatically?
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Is the archiving feature enabled by default in Purview?
No. The archiving action is not enabled by default. Existing retention policies and retention labels remain unchanged until the administration specifically configures archiving in a policy.
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What criteria can Purview take into account?
Depending on the policy and search configuration, criteria such as file type, file size, creation date, modification date, author, and location can be used. Custom SharePoint columns must be available as searchable properties. The last access date is not currently a documented starting point. Before deployment, automatic label assignment can be simulated in Purview.
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Does Microsoft 365 E5 require automatic file archiving?
Yes, as of October 2026, Microsoft specifies a Microsoft 365 E5 license as a requirement for file archiving via Microsoft Purview. Additionally, Microsoft 365 Archive must be enabled in the tenant and linked to an Azure subscription with pay-as-you-go billing. The E5 requirement does not apply to manual archiving by users.
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How much does Microsoft 365 Archive cost?
Microsoft charges $0.05 per GB per month for archive storage; additional SharePoint Standard storage costs $0.20. Only the archive storage that, together with the active storage, exceeds the client’s storage quota is billed. Reactivating archived files is free of charge.
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Does automatic file archiving also work in OneDrive?
According to Microsoft, manual file archiving is currently available only on SharePoint sites. In the announcement regarding Purview archiving, Microsoft mentions SharePoint and OneDrive. You can check the Purview portal to see if and when the feature will be available for OneDrive in your own tenant.
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Does file archiving reduce the storage usage of a SharePoint site?
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Do retention periods remain in effect after archiving?
Yes. Retention policies, retention labels, legal holds, and eDiscovery also apply to archived content.
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Can Microsoft 365 Copilot use archived files?
No, Microsoft 365 Copilot does not use archived files for its responses. They remain searchable via Purview-based search and eDiscovery. They can only be opened after reactivation.
Written by
Dennis Piecha advises companies on all aspects of Microsoft 365, with a focus on Copilot, SharePoint, governance, and intelligent information management. I explain complex topics in an easy-to-understand way and develop practical solutions that deliver real value. From the initial idea to implementation, Dennis provides support through workshops, training sessions, and customized solutions.