Preservation Hold Library

by Mark | Nov 9, 2025 | SharePoint, Squirrel

The Preservation Hold Library: The Hidden SharePoint Storage Cost No One Talks About

And How Squirrel’s Recycle Bin Monitoring Stops Storage Blowouts Without Breaking Retention

Most organisations assume that when files are deleted from SharePoint to reduce storage, the data is actually removed. It seems logical: delete the file, empty the recycle bin, and available space should increase. But in Microsoft 365 environments where retention or compliance policies are enabled, this is simply not what happens. Instead, SharePoint silently moves deleted or modified files into a hidden repository known as the Preservation Hold Library (PHL). This library is not visible to standard users, is rarely checked by administrators, and continues to grow silently in the background. And importantly, it consumes the same high-cost SharePoint storage as the primary site content.

This is why many organisations see storage usage rise even after large clean-up projects. In some cases, deleting old files actually increases total storage usage. And once the tenant reaches its allocated limit, Microsoft begins charging monthly overage fees that grow as storage continues to increase. For companies dealing with active collaboration, heavy file churn, or large historical project archives, the financial impact can escalate quickly.

Squirrel now provides a way to prevent this completely — without disabling retention, breaking compliance, or changing how users work. But before explaining how, we need to clearly understand what the Preservation Hold Library is and why it behaves the way it does.

Why the Preservation Hold Library Exists

Microsoft 365 is designed to support regulatory, governance, and legal protection standards. Many organisations are required to retain business records for a set period — often 2, 5, or even 7+ years — even if users attempt to delete or overwrite them. To enforce this, SharePoint does not allow permanent deletion when any of the following are active:

Retention Policies
Retention Labels
Litigation Hold
eDiscovery Hold

If a file is modified or deleted, SharePoint is obligated to keep the original, unaltered copy. That preserved copy must remain accessible for audit or legal discovery for the duration of the retention period. Rather than blocking users from deleting files—which would be disruptive—SharePoint allows the deletion to appear to succeed, but quietly stores the preserved version in the Preservation Hold Library, invisible to the person who deleted it.

The result is that the organisation stays compliant, the user continues working as normal, but storage consumption increases in ways that are neither obvious nor intuitive.

Why Storage Goes Up When Files Are Deleted

This is the part that causes the most confusion.

Let’s consider a simple real-world scenario:

A project team completes a body of work and decides to clean up hundreds of gigabytes of old documents. They delete the files from the library and even empty the recycle bin. The site now appears to be almost empty.

However, a week later the Microsoft 365 storage report shows that total SharePoint storage has gone up, not down.

This happens because every file that was deleted was automatically copied into the Preservation Hold Library. And if those files had multiple versions — which is common with documents that evolve over time — every one of those versions is also retained. So deleting 200GB of documents may easily result in 300GB+ being stored in the PHL.

The more aggressively users try to clean up data in a retention-controlled environment, the faster the PHL grows.

This is why many organisations see storage spike immediately after “data clean-up initiatives.”

Why This Becomes a Cost Problem

When your organisation exceeds its Microsoft 365 storage allocation, Microsoft charges for additional storage every month. These are not one-time charges — they accumulate indefinitely and increase as retained data accumulates.

Meanwhile, storing that same data in Azure Blob Storage costs a fraction of the price — often 20× to 100× cheaper depending on the tier.

Storage Location	Approx. Cost per TB/month	Notes
SharePoint Storage (Overage Billing)	$60–$120+	Cost grows continuously
Azure Blob Cool Tier	$1–$3	Same data, far lower cost
Azure Blob Archive Tier	$0.20–$1	For long-term retention data

So the problem is not just that the PHL grows — it’s that it grows in the most expensive place possible.

This is why many organisations see storage spike immediately after “data clean-up initiatives.”

Why Traditional Fixes Don’t Work

Most organisations try the obvious steps first:

Deleting old files
Emptying recycle bins
Asking users to clean their sites
Using third-party file cleanup tools
Manually exporting content to external drives

None of these work, because retention overrides deletion. As long as retention is active, SharePoint is obligated to preserve the file — whether or not users want it deleted.

This isn’t a technical problem.
It’s a governance rule.
So the solution must respect governance.

And that’s where Squirrel’s new feature comes in.

How Squirrel Stops the PHL From Growing (Without Breaking Retention)

Squirrel has always archived inactive content into low-cost Azure Blob storage while leaving a stub file behind in SharePoint so users can still open the document as if it were still stored there.

Now, Squirrel adds the ability to intercept deletions.

Recycle Bin Monitoring (New Feature)

When enabled:

A user deletes a file in SharePoint.
Before SharePoint moves it into the Preservation Hold Library
Squirrel detects the deletion.
Squirrel archives the file directly to your Azure Blob storage, under your retention policies.
Squirrel leaves a stub behind in SharePoint so users can still open the file in the same way as before.

The result:

The file is still retained (compliant)
The file is still accessible (stub handles retrieval)
But SharePoint never stores it in the PHL
Storage stops growing
Costs drop to a fraction of what they were

This does not disable retention.
This does not circumvent compliance.
This simply changes where the retained file lives.

Instead of being stored in Microsoft’s high-cost SharePoint database tiers, it is stored in your much cheaper Azure Blob storage, fully controlled by you.

Why This Is the Correct, Safe, Long-Term Strategy

This approach:

Respects retention rules
Preserves audit and discovery access
Prevents storage blowouts
Avoids manual cleanup cycles
Does not require retraining users
Does not change how people interact with files

Nothing about how users work changes.
Nothing about your compliance posture changes.
Only the storage location changes — and the cost of that storage drops dramatically.

Summary

Challenge	Why It Happens	Impact	Squirrel’s Solution
SharePoint storage keeps increasing	Deleted/modified files are preserved in PHL under retention	Tenant exceeds storage allocation and incurs monthly costs	Intercept deletions and archive files to Azure Blob
Cleanup does not reduce storage	Retention requires files to be preserved	Storage goes up, not down	Squirrel prevents files from entering PHL
Need to retain access and audit history	Compliance requires recoverability	Cannot bulk delete safely	Stub files maintain access while storage moves to Azure

Frequently Asked Questions

1. Why does SharePoint storage increase even when files are deleted?
Because if retention policies or legal holds are active, SharePoint cannot permanently remove content. Instead, deleted files are copied into the Preservation Hold Library, which still consumes storage.

2. Where is the Preservation Hold Library and why can’t users see it?
The PHL is a hidden system library. It is only visible to Site Collection Administrators and does not appear in normal document library views. Microsoft hides it to prevent accidental modification or deletion of retained records.

3. Does emptying the Recycle Bin remove the files from the Preservation Hold Library?
No. The Recycle Bin is only the first stage of deletion. If retention is enabled, the file is preserved in the PHL even after the recycle bin is emptied. Storage usage does not decrease.

4. If we turn off retention policies, will the PHL empty itself automatically?
No. Disabling a retention policy does not purge existing retained data. The files remain until the retention period expires or they are removed using a controlled remediation process.

5. Can we delete or purge the Preservation Hold Library to reclaim storage?
Not while retention applies. Purging data still under retention is a compliance violation and can expose the organisation to legal and regulatory risk.

6. Why does deleting old project sites or folders sometimes increase storage?
Because deleting large amounts of data triggers large batch preservation events, which can cause the PHL to grow significantly, especially when multiple versions of files are retained.

7. Can we still meet legal and regulatory retention requirements if we archive data outside of SharePoint?
Yes — as long as the archived data is stored in a compliant, tamper-resistant, and retrievable format. Squirrel preserves metadata and access integrity while storing files in your Azure Blob Storage, which meets retention requirements.

8. How does Squirrel prevent the Preservation Hold Library from growing?
Squirrel’s Recycle Bin Monitoring intercepts deletion events. Instead of letting the file fall into the PHL, Squirrel archives it directly to Azure Blob Storage and leaves a lightweight stub file in SharePoint for seamless access.

9. Do users still access archived or deleted files in the same way?
Yes. When users click the stub in SharePoint, Squirrel retrieves the file from Azure and opens it normally. There is no change to user workflow and no retraining required.

10. How much can we reduce storage costs by archiving instead of using the PHL?
Typically 20× to 100×, depending on the Azure storage tier. SharePoint storage overages are costly, while Azure Blob storage is designed for long-term, low-cost retention.

Storage Type	Approx. Cost per TB/month
SharePoint Overages	$60–$120+
Azure Blob Cool Tier	$1–$3
Azure Blob Archive Tier	<$1

Stop SharePoint Storage Blowouts Caused by the Preservation Hold Library

Squirrel intercepts deletions before SharePoint can store them in the Preservation Hold Library, archiving the file to your Azure Blob storage instead. Retention is preserved, access is maintained, and storage costs drop dramatically.

With Squirrel’s Recycle Bin Monitoring, deleted and modified files are captured and archived automatically — preventing the Preservation Hold Library from silently consuming expensive SharePoint storage.

Retention Without the Storage Cost

Want to reduce your SharePoint Storage costs?

Request a Demo of Squirrel Today

SharePoint Storage Limit Warning

by Mark | Nov 5, 2025 | SharePoint, Squirrel

SharePoint Storage Limit Warning

What To Do When You Hit 95% Capacity

When your Microsoft 365 tenant reaches the SharePoint storage limit, the impact is immediate. File uploads start failing, Teams sites stop provisioning, indexing slows down, and storage overage charges begin applying automatically. For organisations storing large volumes of documents, drawings, media files, or project data, hitting the SharePoint capacity threshold can become a recurring and expensive problem—especially when underlying retention policies prevent deletion.

How SharePoint Storage Allocation Works

Your tenant’s storage limit is determined by Microsoft 365 licensing:

10 GB base storage per tenant
+ 10 GB per licensed user

Example:

Licensed Users	Total SharePoint Storage Allocation
250 users	10 GB + (250 × 10 GB) = 2.51 TB
1,000 users	10 GB + (1,000 × 10 GB) = 10.01 TB
10,000 users	10 GB + (10,000 × 10 GB) = 100.01 TB

This storage is shared across:

SharePoint Online sites
Microsoft Teams files
OneDrive for Business accounts
The Preservation Hold Library (if retention or legal hold is enabled)

Over time, these workloads accumulate content faster than expected, especially in organisations with:

Project or engineering document repositories
Large Teams channels and video call recordings
Active retention / compliance policies
High staff turnover (departing user OneDrives pile up)
Multiple business units collaborating in shared libraries

What Happens When You Hit the SharePoint Storage Limit

When your storage consumption reaches 90–95%, you may see:

Symptom	Impact
Uploads fail or sync errors appear	Users can’t save files
New Teams/SharePoint sites fail to create	Collaboration is blocked
SharePoint search/indexing slows	Content becomes harder to find
Performance degradation in Teams/SharePoint	Daily operations affected
Microsoft begins billing storage overage fees	Recurring operational cost

Overage charges are not one-off—they continue every month.

Why Deleting Files Usually Doesn’t Work

Most organisations attempt deletion first. Two problems arise:

Retention policies prevent permanent deletion
Files go to the Preservation Hold Library, which still consumes storage.
Users can’t reliably determine what is safe to delete
Deletion risks breaking collaboration context, version history, and audit trails.

So even when large folders are removed, overall tenant storage doesn’t change.

Step 1: Identify Where Storage Is Being Consumed

Check Storage Usage in Microsoft 365 Admin Center

Go to SharePoint Admin Center
Select Sites → Active Sites
Sort by Storage Used

Look specifically for:

Hotspot	Storage Pattern
OneDrive of former employees	Large, unused, often years old
Project / department sites	Heavy media, drawings, reports
Teams collaboration sites	Files duplicated across channels
Preservation Hold Library	Hidden retained data growing silently

This analysis identifies where optimisation efforts provide immediate value.

Step 2: Address Departed Employee OneDrives (Fastest Storage Win)

When staff leave, their OneDrive is typically preserved for compliance reasons. Over time, this results in massive storage accumulation that provides no operational value.

Correct Approach (No Risk)

Export or archive the user’s OneDrive
Store it in long-term low-cost cloud storage
Remove the original OneDrive container from the tenant

This process instantly frees capacity.

Chipmunk automates this:

Archives departed user OneDrive, Exchange, and Teams data
Preserves metadata and searchability
Allows controlled, auditable access for investigation or continuity
Safely removes the original OneDrive to reclaim storage

More info: https://www.smikar.com/chipmunk-automated-user-archiving/

Step 3: Archive Inactive SharePoint Content Without Breaking Access

For SharePoint sites that contain old project or historical content, the goal is to move inactive files to cheaper storage while keeping them accessible.

The Archive Pattern That Works

Identify files older than X months
Move them to Azure Blob or cold storage
Leave a lightweight placeholder (stub) behind
Users can still open the file normally

This allows:

No change to user experience
No broken links
No permission changes
No retraining

This is the core function of Squirrel:

Automatically archives files from SharePoint to Azure Blob Storage
Leaves stub files so users access archived content as usual
Supports metadata retention, version history capture, and audit compliance
Reduces storage consumption significantly and permanently

More info: https://www.smikar.com/squirrel

Step 4: Prevent the Storage Problem from Returning

Once storage is stabilised:

Governance Task	Frequency
Archive inactive files	Monthly scheduled job
Auto-archive departing users	Triggered at license removal
Monitor storage trends	Monthly review
Lifecycle policies by library	Standard practice

This shifts the organisation from reactive cleanup to predictable storage lifecycle management.

Summary

Problem	Solution	Outcome
SharePoint storage limit reached	Identify largest storage locations	Visibility to act
Departed user OneDrives consuming storage	Archive using Chipmunk	Immediate storage recovery
Legacy data sitting in SharePoint	Archive to Azure with Squirrel	Lower storage cost, no user disruption
Storage continually grows	Apply automated lifecycle policies	Stable long-term storage costs

Frequently Asked Questions

Does Microsoft charge for storage overages?
Yes. Once your SharePoint storage allocation is exceeded, Microsoft bills monthly for additional storage consumed.

Will deleting files reduce SharePoint storage usage?
Not if retention policies or legal holds are enabled. Deleted files move to the Preservation Hold Library and still consume storage.

Can archived files still be opened from SharePoint?
Yes. With stub-based archiving (such as Squirrel), files open exactly as before.

How do we handle access to files from former employees?
Use an automated archiving solution like Chipmunk that preserves search and audit access while releasing OneDrive storage.

Reduce your SharePoint Storage with Squirrel

Mastering the User Off-Boarding Process

by Mark | Sep 16, 2025 | Office 365, SharePoint

How to Protect Your Data When Employees Leave

When someone leaves your organisation — whether they resign, retire, or are let go — it’s easy to think the hard work is over. But the moment an employee’s last day arrives, a new risk window opens. If their access isn’t revoked properly or their data isn’t captured, organisations face security breaches, data loss, compliance issues, and rising costs.

This is why a well-designed user off-boarding process is just as important as onboarding. And it’s where Chipmunk can dramatically simplify and secure your operations.

The Risks of Poor Off-Boarding

Many organisations underestimate how much business knowledge is locked inside user accounts. When those accounts are deleted or licenses are removed without planning, it can create significant problems. Former users may still have access to email, Teams, or shared documents if access isn’t revoked cleanly. Microsoft 365 automatically purges inactive accounts after a short grace period, which can permanently erase critical business records.

This lack of planning also creates compliance risks. Without a record of former employees’ data, you may fail audits or be unable to respond to legal discovery requests. Beyond legal and security issues, poor off-boarding also impacts day-to-day operations. When user accounts disappear, managers lose visibility into projects, conversations, and files, which disrupts workflows and knowledge continuity.

The Best-Practice Off-Boarding Process

A robust off-boarding process should follow a structured sequence to ensure no step is missed. While the exact tasks may vary between organisations, these core stages are widely recognised as best practice:

HR Initiation and Communication. HR formally notifies IT and relevant managers of the employee’s departure, confirms the exit date, and collects any company-owned equipment. This communication triggers the technical off-boarding workflow.
Pre-Exit Access Planning. IT reviews all accounts, licenses, and roles the user holds, including Microsoft 365 services, line-of-business apps, VPN, and administrative privileges. A plan is made to disable these systematically to avoid disruptions.
Data Capture and Archiving. Before the account is disabled, all user data must be preserved — OneDrive, Exchange mailbox, and Teams chats. This protects business knowledge and ensures compliance.
This is where Chipmunk comes in. With a single action, Chipmunk captures and archives the user’s entire digital footprint inside your own Azure tenant, creating a secure and immutable record that remains accessible to authorised teams.
License Recovery and Account Deactivation. Once data is captured, IT can safely disable the account, revoke MFA, remove from groups, and free up Microsoft 365 licenses for reuse. This step immediately reduces costs and closes security gaps.
Content Ownership Reassignment. Shared content such as Teams channels, SharePoint sites, or shared mailboxes should be reassigned to other users or managers to maintain project continuity.
Audit and Compliance Logging. All actions taken should be logged for audit purposes. Chipmunk automatically generates a complete record of the archived data and the actions taken, supporting legal and governance needs.
Retention and Eventual Deletion.Archived user data should be retained according to your organisation’s policy or industry regulations. After the retention period expires, it can be securely deleted to reduce storage costs.

Following these steps ensures every departure is handled consistently, securely, and in full compliance — protecting both your data and your reputation.

User Off-Boarding Checklist

Secure Every Departure — Step by Step

1. HR Initiation

Notify IT and line managers of departure
Confirm final working day
Begin collection of company devices

2. Access Planning

Inventory all user accounts and admin roles
Document MFA status, group memberships, shared mailboxes
Prepare account disablement sequence – Disable User Account

3. Data Capture & Archiving

Chipmunk detects disbled account and starts the archiving process of the users data
Capture user’s OneDrive, Exchange mailbox, and Teams data
Store securely inside your Azure tenant

4. License Recovery & Account Deactivation

Disable sign-ins and revoke MFA
Remove from all security groups
Reclaim Microsoft 365 licenses

5. Content Ownership Reassignment

Reassign Teams channels to managers
Transfer shared mailboxes or delegated access
Ensure project continuity for remaining staff

6. Audit & Compliance Logging

Record every off-boarding action
Capture evidence of data archiving
Maintain logs for governance and legal needs

7. Retention & Eventual Deletion

Apply retention policy for archived data
Schedule secure deletion after policy expiry
Validate removal and update records

Where Most Organisations Struggle

Despite having good intentions, off-boarding is often messy and manual. Different IT staff follow different steps, with little visibility into all the places a user’s data lives. Exporting content from OneDrive or Teams can be clumsy and error-prone, and often ties up IT resources for days.

Because there’s no single repository of archived user data, information gets lost, and managers have no easy way to recover it. This creates a gap between what organisations want — secure, compliant off-boarding — and what they can realistically deliver with limited time and tools.

Introducing Chipmunk: Automated Microsoft 365 Off-Boarding

Chipmunk was built to solve this problem. It automates the most critical and time-consuming part of off-boarding: capturing and preserving departing users’ data. Chipmunk collects OneDrive files, Exchange mailboxes, and Teams chats, automatically.

Once captured, the data is stored securely in your own Azure tenant, under your full control. It’s compliant, and easily searchable by authorised staff such as managers, HR, or legal teams. Chipmunk’s approach frees up costly Microsoft 365 licenses immediately after off-boarding and maintains a full audit trail of every action taken, which is critical for compliance. Most importantly, because Chipmunk operates inside your Azure environment, your data never leaves your control.

How Chipmunk Fits Into Your Off-Boarding Workflow

With Chipmunk in place, the process becomes seamless. HR notifies IT when a user is leaving. IT disables the user account then Chipmunk, which automatically captures all the user’s data across Microsoft 365 — OneDrive, Exchange, and Teams. That content is stored securely in Azure, where it can be searched and retrieved if needed later.

Once the archive is complete, IT receives an email from Chipmunk saying the users data has been archived and can then disable the user’s account, reclaim the licenses, and revoke all access. What previously took days of manual work can now be completed in a fraction of the time, with complete confidence and zero data loss.

Make Off-Boarding a Strength, Not a Weakness

User off-boarding is a critical moment in the employee lifecycle — and often the most neglected. Without a clear process, organisations risk losing valuable knowledge, breaching compliance rules, or leaving security gaps that can be exploited.

With Chipmunk, you can turn off-boarding from a risky manual chore into a fast, secure, and automated process that protects your organisation every time someone leaves.

Chipmunk: Automate Off-Boarding and Cut Costs

Free up Microsoft 365 licenses instantly while keeping all user data safely stored for compliance, audits, and future access.

Ensure no knowledge is lost by automatically capturing and archiving departing employees’ OneDrive, Exchange and Teams content before accounts are removed.

Secure Every Departing User’s Data

Search for Chipmunk in Microsoft Marketplace to get Started.

SharePoint Archiving Best Practices for Compliance

by Mark | Aug 27, 2025 | SharePoint

SharePoint Archiving Best Practices for Compliance and Cost Savings

SharePoint Online has become the backbone of document management for many organizations. From project files to legal contracts, HR records to financial reports, it holds critical business data that grows relentlessly.

But as usage increases, so do two unavoidable challenges:

Escalating storage costs – Microsoft charges around $180–$200 per terabyte (TB) per month once you exceed your licensed allocation. For large tenants, that quickly becomes six figures per year.
Tightening compliance obligations – Frameworks like GDPR, HIPAA, SOX, ISO 27001, NIST, and the Australian Essential 8 demand strict retention, defensible deletion, and auditability.

The dilemma? Simply deleting files may reduce storage bills, but it risks non-compliance. Retention policies may satisfy regulators, but they don’t stop your storage from exploding in cost.

The solution is archiving: systematically moving inactive content out of costly SharePoint storage into secure, compliant, and lower-cost storage — without losing access or auditability. This article explores SharePoint archiving best practices to achieve both compliance and cost efficiency.

Understand the Difference Between Retention and Archiving

One of the most common mistakes organizations make is assuming Microsoft’s retention features are equivalent to archiving. They are not.

Retention policies (Microsoft Purview):
These prevent documents from being deleted or altered during a specified period. For example, you can set a 7-year retention for financial files. However, those files remain in your active SharePoint environment, consuming expensive storage.

Archiving:
This is about moving older or less frequently accessed content to a different tier of storage (e.g., Azure Blob). Users may still see stubs or shortcuts in SharePoint, but the heavy lifting of storage cost is moved elsewhere. Metadata, security, and accessibility are preserved.

Example:
A construction company keeps every project’s documents for 10 years. If they rely solely on retention, those files remain live in SharePoint, pushing storage bills above $250,000 annually. With archiving, the same files are securely stored in Azure Blob at a fraction of the cost, while still being retrievable for audits or disputes.

Best practice: Use retention to ensure legal minimums are met. Use archiving to keep costs sustainable while retaining compliance. Both should work together.

Align Archiving with Compliance Requirements

Archiving decisions cannot be random; they must reflect the regulatory landscape your business operates in.

Industry frameworks and requirements:

Financial services (SOX, SEC, APRA CPS 234 in Australia): Often mandates financial record retention for 7 years or more. Non-compliance can result in penalties and reputational damage.
Healthcare (HIPAA): Requires health records to remain accessible, immutable, and secured for extended periods. Archiving provides a way to meet those obligations without costly live storage.
Public sector (Essential 8, ISO 27001): Emphasizes governance, protection against accidental loss, and traceability. Archiving ensures agencies can produce records on demand.

Real risks and penalties:

Under GDPR, improper handling of data can result in fines of up to €20M or 4% of annual global turnover.
The SEC has fined firms millions for failing to retain communication records properly.
In healthcare, HIPAA penalties can run up to $1.5M per year, per violation.

Best practice checklist:

Map each compliance framework you fall under.
Translate requirements into archiving rules (e.g., “Archive project data after 2 years of inactivity, retain for 7 years in immutable storage”).
Document the rationale — auditors will want to see not just the process but the justification.

Create a Clear Archiving Policy

An archiving policy is more than a technical setting. It is a formal governance document that defines what, how, and why data is archived. Without it, you risk inconsistency, shadow IT, or gaps that auditors will notice.

A good archiving policy should cover:

Scope – Define what libraries, sites, or content types are included. Example: “All completed project sites will be archived 12 months after project close.”
Archiving rules – Define triggers such as inactivity (no edits in 24 months), age (files older than 3 years), or event-based (employee departure).
Exemptions – Identify exceptions (e.g., files under legal hold).
Retention length – How long archived content stays before defensible deletion (aligned with regulation).
Access controls – Who can request or restore archived content.
Audit process – How archiving will be verified and reported.

Example policy excerpt:

“All SharePoint documents not accessed in the past 36 months will be archived to Azure Blob storage via Squirrel. Archived files will be retained for 7 years, encrypted at rest, and logged for all access. Exceptions apply to documents under MIP label ‘Legal Hold.’ Restores must be requested via IT Service Desk.”

Best practice: Publish your archiving policy in your governance documentation. Communicate it to business units so users understand that archiving is not deletion — their files remain accessible when needed.

Automate the Archiving Process

Manual archiving is not sustainable. Expecting staff to move files manually, export libraries, or classify documents invites error and inconsistency. Worse, it creates compliance blind spots.

Why automation matters:

Consistency: Automation ensures the same rules are applied across all libraries.
Compliance: Automated logs and policy enforcement prove due diligence.
Scale: Organizations with millions of documents cannot rely on manual intervention.

Example without automation:
A legal department instructs staff to “move files older than 3 years to a separate library.” Compliance drops because staff forget, misunderstand, or leave.

Example with automation:
Squirrel applies rules automatically (e.g., archive files older than 24 months), replaces them with stubs in SharePoint, and logs every action. Compliance is achieved without staff intervention.

Best practice:

Use metadata or MIP labels to drive archiving decisions.
Apply idle-time rules (last modified >24 months).
Replace files with stubs so users can still access them seamlessly.
Ensure every archive event is logged for audit.

Ensure Secure, Auditable Storage

For compliance, archiving is not just about moving files to cheaper storage. The storage itself must be secure, auditable, and compliant.

Key requirements:

Immutability: Archived files must be protected against tampering or deletion until their retention period ends. Azure Blob supports Write Once Read Many (WORM) options.
Encryption: Data should be encrypted at rest and in transit. Azure provides automatic encryption with customer-managed keys.
Audit trails: Every access or restore event should be logged and reportable.
Accessibility: Files must remain retrievable within reasonable timeframes for eDiscovery or regulator requests.

Best practice:
Use Azure Blob as the underlying storage with Squirrel providing:

Stub file placeholders in SharePoint so users do not feel the archive gap.
Immutable storage configurations.
Full reporting dashboards to satisfy audits.

This ensures compliance is not compromised while achieving cost savings.

Review and Update Policies Regularly

Archiving policies cannot be “set and forget.” Regulations change, and so does your business.

Examples of change:

GDPR interpretations continue to evolve.
Australia’s Essential 8 maturity model has updated requirements.
NIST releases revisions that shift compliance expectations.

Best practice:

Conduct an annual governance review.
Involve IT, Legal, and Compliance teams.
Review audit logs from your archiving solution to ensure policies are being enforced.
Adjust rules as needed (e.g., change idle time from 24 months to 18 months if storage costs spike).

Proactive reviews protect you against regulatory surprises and maintain stakeholder trust.

FAQs

Q: How long should we keep archived SharePoint data?
It depends on industry rules. Financial services may require 7 years. Healthcare can extend to the lifetime of a patient. Always align with your sector’s legal requirements.

Q: Does archiving reduce SharePoint storage usage?
Yes. Proper archiving removes files from SharePoint’s active quota, cutting down Microsoft’s storage charges.

Q: Is archiving with third-party tools compliant with Microsoft’s shared responsibility model?
Yes. Microsoft manages the platform; you manage your data. Using solutions like Squirrel ensures you meet your responsibilities.

Q: Can archived files be restored quickly for an audit?
Yes. With Squirrel, stub files remain in SharePoint and can restore on demand with a click, ensuring compliance with audit requests.

Conclusion

SharePoint archiving is no longer optional. Organizations face spiraling storage costs and tightening compliance obligations. Deletion puts compliance at risk; retention policies inflate costs. Archiving delivers the best of both worlds: regulatory alignment and financial sustainability.

Best practices include:

Understanding the distinction between retention and archiving.
Aligning policies with compliance frameworks.
Documenting and communicating a clear archiving policy.
Automating the process to eliminate errors.
Using secure, auditable storage.
Balancing compliance with hard cost savings.
Reviewing policies regularly to stay aligned with evolving regulations.

With solutions like Squirrel, organizations can automate SharePoint archiving, reduce costs by 70% or more, and remain fully compliant with frameworks like GDPR, HIPAA, SOX, ISO 27001, and Essential 8.

Learn more about how Squirrel ensures compliant SharePoint archiving →

Archiving and Compliance in SharePoint doesnt have to be hard.

With Squirrel, you can reduce your SharePoint Online costs, archive to cheaper Azure Storage and remain compliant with your regulations.

Stay compliant and archive your SharePoint Data with Squirrel

Ready To Start Reducing your SharePoint Costs?

Request a demo today

Stop paying for Microsoft 365 licenses

by Mark | Jul 2, 2025 | Office 365

How to Stop Paying for Microsoft 365 Licenses After an Employee Leaves

When someone leaves your company, the natural step is to disable their Microsoft 365 account. But what many businesses don’t realize is that they often continue paying for that user’s license — just to retain access to their OneDrive files, Teams chats, and emails.

Over time, this adds up to thousands in unnecessary costs.

In this article, we’ll explain:

Why Microsoft 365 makes it difficult to offboard users without data loss
What happens to a user’s data when their license is removed
How to stop paying for ex-employee licenses while retaining access to critical data
A simpler, automated solution using Chipmunk

The Problem: You’re Still Paying for Departed User Licenses

When an employee leaves, their account is typically:

Disabled in Entra ID (formerly Azure Active Directory)
But the Microsoft 365 license remains assigned

Why? Because once the license is removed, Microsoft begins deleting that user’s data.

That means IT teams often keep licenses active just to preserve data — even if that data may never be used again.

If you’re paying $30/month for each departed user’s license, that’s:

100 users = $3,000/month
100 users = $36,000/year

And this is just to hold onto data that should already be safely archived.

What Happens to Microsoft 365 Data When a License is Removed?

Unless you’ve set up retention policies or manually archived the data, Microsoft will begin deleting user data after a license is removed.

Here’s what typically happens:

Service	Retention After License Removal	Outcome
OneDrive	30 days	Files permanently deleted
Exchange Email	30–60 days	Mailbox content deleted
Teams Chats	Up to 93 days	Chats and message history deleted

If you remove a license and haven’t backed up the data, you could permanently lose important files, emails, or conversations needed for handovers, audits, or legal compliance.

Why This Is a Costly Problem?

Microsoft offers tools like retention policies and inactive mailboxes, but they are:

Difficult to configure correctly
Don’t cover everything (Teams chat is a common gap)
Often still require the license to remain in place

This means many organizations choose to keep paying for the license instead of risking data loss.

Over time, this becomes a hidden cost — one that can run into tens or hundreds of thousands of dollars per year, depending on your organization size and turnover rate.

The Right Way to Handle Offboarding: Archive Then Delete

The best solution is simple:

Archive all of the user’s data when they leave, then safely remove their license.

That means:

Downloading and saving their OneDrive data
Exporting all Exchange emails
Capturing Teams conversations
Storing the data securely for future reference

Doing this manually is time-consuming and error-prone. It also requires different tools for each data type, making it difficult to maintain consistency or ensure compliance.

Introducing Chipmunk: Automated Offboarding for Microsoft 365

Chipmunk is a purpose-built solution to solve this problem.

It automates the entire offboarding process by:

Detecting when a Microsoft 365 user is disabled in Entra ID
Automatically backing up their:
- OneDrive files (with full folder structure)
- Exchange emails (saved in .eml format)
- Microsoft Teams messages (including private chats and attachments)
Uploading the data to your own Azure Blob Storage
Logging every action for full auditability

Once Chipmunk completes the archive, you can safely remove the license — no risk of data loss, no ongoing Microsoft billing.

How It Works (Step by Step)

A user is disabled in Microsoft Entra ID
Chipmunk automatically detects the change
It backs up OneDrive, Email, and Teams data
The archive is securely stored in your Azure Blob Storage
You delete the Microsoft license with confidence that nothing has been lost

No scripts. No retention policies. No risk.

Built for Compliance and Peace of Mind

Chipmunk helps your organization meet data retention and compliance requirements across multiple regulatory frameworks, including:

ISO 27001
GDPR
HIPAA
SEC 17a-4
Microsoft Purview compatibility

By automatically archiving all content from disabled Microsoft 365 users and storing it securely in your own Azure tenant, Chipmunk ensures your data is fully retained, auditable, and under your control — without reliance on ongoing Microsoft licensing or complex configurations.

Summary: Don’t Let Data Loss or Licensing Waste Sneak Up on You

Without Chipmunk	With Chipmunk
Continue paying $30+/user/month	Remove license immediately after archiving
Manual exports or retention policies	Fully automated archiving
Data gaps in Teams, OneDrive, Exchange	All covered automatically
Compliance risk, audit blind spots	Secure, logged, and audit-ready archives

Ready to Save on Microsoft 365 Licensing?

If your organization is still paying for ex-employee licenses just to preserve their data — it’s time to stop.

Chipmunk gives you a fully automated, secure, and cost-effective way to archive departed user data across OneDrive, Teams, and Exchange — and safely delete the license.

« Older Entries