Offloading or archiving in Microsoft 365?

Many IT Admins are familiar with traditional archiving solutions in which files are deleted from SharePoint or “moved” to a separate storage. However, this often leaves out metadata, rights or restoration. This is where offloading comes in.

For many IT teams, SharePoint storage has become a growing challenge, especially finacally. As data piles up, Microsoft 365 costs rise sharply. Traditional archiving solutions, which move files to external systems or delete them from SharePoint, often create more problems than they solve: metadata is lost, permissions break, and compliance becomes fragile. End users are left with a fragmented experience, and administrators are stuck with extra overhead.

Offloading means that files which are rarely used or no longer relevant are seamlessly transferred from expensive SharePoint storage into low-cost, flexible Azure Blob Storage. The difference to classic archiving is crucial. The files themselves leave SharePoint, but all metadata, permissions, and familiar file links remain. For users, nothing changes—if they click on a file that has been offloaded, it is retrieved automatically in the background. They keep working in Word Online or Teams without even realizing the file is being pulled from Azure.

This creates what we call a “living archive.” Instead of freezing files in an inaccessible storage system, offloading ensures that SharePoint remains lean and tidy while archived files remain available on demand.

• SharePoint storage costs in Microsoft 365 keep rising as data grows, creating financial pressure for IT teams.
• Traditional archiving breaks metadata, permissions, and compliance—leaving admins with overhead and users with a fragmented experience.
• Layer2 ShArc introduces offloading: rarely used files are moved from costly SharePoint storage to low-cost Azure Blob Storage.
• Unlike classic archiving, all metadata, permissions, and file links remain intact.
• Users keep working in SharePoint, Teams, or Word Online as usual and files are automatically retrieved in the background.
• The result: a “living archive” where SharePoint stays lean and clean, while archived files remain instantly accessible on demand.

By using Azure’s hot, cool, or archive storage tiers, organizations can save more than 50% of their additional SharePoint storage costs compared to traditional archiving solutions. Unlike  on-premises archives, there is no need for third-party systems to store data because all data is still in the Mixrosoft environment. Users continue to work in the structures they know, while administrators retain audit logs, user rights, and compliance features.

Perhaps the most powerful aspect of ShArc is automation. Rather than forcing users to manually decide which files should be archived, administrators can define lifecycle rules such as “older than twelve months” or “larger than 100 MB.” At regular intervals, these rules are applied automatically, ensuring that cold data is consistently shifted into cheaper storage without manual effort. Besides the offload of Data all along, you can also choose how many latest versions of a document you can keep. A preview function even shows how much space and cost can be saved before the offloading begins.

When users need to access an offloaded file, ShArc retrieves it seamlessly. A short loading screen appears, and then the document opens as usual. After editing, the file can either stay in SharePoint or be moved back into Azure with the next offload cycle. For larger projects, entire SharePoint libraries or even complete sites can be offloaded in one go, and just as easily restored with a few clicks.

The long-term benefits go beyond storage savings. Offloading helps establish better “data hygiene,” reducing unnecessary versioning, eliminating duplicates, and streamlining the SharePoint environment. With clean, well-structured data, organizations are not only saving money but also preparing themselves for future Microsoft 365 features, such as AI-powered data management with Copilot.

In short, Layer2 ShArc offers what classic archiving cannot: a smart, scalable solution that reduces costs, keeps governance intact, and gives users a seamless experience. By making offloading part of your long-term data strategy, you ensure that Microsoft 365 stays lean, compliant, and ready for the future.

Frequently asked questions about offloading and archiving in Microsoft 365

What is the storage limit in Microsoft 365?

How does Microsoft 365 archiving usually work?

What happens when a SharePoint site is archived?

Should I archive or offload my data?

What is the best alternative to archiving?