Dynamics 365 Storage Costs Explained: Why Attachments Drive File Storage Growth
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Dynamics 365 Storage Costs Explained: Why Attachments Drive File Storage Growth
Dynamics 365 storage costs rarely increase overnight. They creep up quietly month after month until they become a budget discussion no one planned for. In most cases, the root cause isn’t CRM data growth. It’s attachments.
This page explains how Dynamics 365 storage really works, why attachments drive costs faster than expected, and what a sustainable storage strategy looks like without deleting data or disrupting users.
Understanding How Dynamics 365 Storage Really Works
What Counts as Storage in Dynamics 365?
Dynamics 365 uses Microsoft Dataverse, which divides storage into three main categories:
In simple terms, this is how Microsoft decides what you pay for storage.
- Database storage – Structured CRM data like accounts, contacts, opportunities, and cases
- File storage – Attachments such as documents, images, PDFs, and email files
- Log and audit storage – System logs, audits, and telemetry data
While database storage grows gradually, file storage grows rapidly, often without teams noticing.
The Difference Between Data Records and Attachments
CRM records are structured, lightweight, and predictable. Attachments are not.
They behave more like documents stored on a drive than CRM data fields.
Attachments are:
- Unstructured
- Frequently duplicated
- Often large (contracts, images, invoices, presentations)
This difference matters because Dataverse treats attachments as file storage, which scales and costs very differently from CRM data.
Where Attachments Are Stored in Dataverse
Attachments are embedded across everyday CRM activities, including:
- Notes
- Email activities
- Timeline attachments
- Custom entities
Because they are spread across entities, attachment growth is hard to visualize and even harder to control.
This is why storage costs often rise before teams realize there is a problem.
Why Storage Costs Grow Faster Than You Expect
The Silent Growth of Attachments Over Time
As CRM adoption increases, so does file usage:
- Emails synced with attachments
- Support teams uploading evidence
- Sales teams attaching proposals
Each action feels insignificant. Collectively, they compound into gigabytes and eventually terabytes of file storage.
This is how storage overruns happen without any single team feeling responsible.
Why “Just a Few MBs” Add Up Quickly
A single 5 MB attachment doesn’t raise alarms. But multiply that by:
- Hundreds of users
- Daily email activity
- Multi-year data retention
The result is exponential growth without any clear warning signs.
The Most Common Attachment Storage Traps
- Email attachments auto-synced into CRM
- The same document is attached to multiple records
- High-resolution images and scanned PDFs
- Legacy files that are never accessed but never removed
Dynamics 365 Storage Pricing: What Teams Often Miss
How Microsoft Prices Storage (High-Level Overview)
Dynamics 365 includes a limited amount of storage.
This is where most budgeting assumptions break. Once exceeded, organizations must purchase additional capacity.
Key distinction:
- Database storage increases predictably
- File storage grows unpredictably and hits limits faster
Most cost overruns originate from file storage, not CRM records.
Why Attachment Storage Is Usually the First Cost Spike
Attachments consume storage faster because they:
- Require no validation
- Are added automatically via email sync
- Are rarely reviewed or cleaned up
Storage consumption often becomes visible only after thresholds are crossed.
When Storage Becomes a Budget Line Item
At scale, storage shifts from a technical concern to a financial one:
By this point, storage decisions are no longer optional.
- Unexpected renewal costs
- Procurement approvals
- Pressure to delete historical data
By this stage, options are limited and reactive.
Why Native Cleanup and Archiving Don’t Solve the Problem
Manual Deletion: Why It’s Risky and Unsustainable
Deleting attachments manually introduces risk:
This is why cleanup projects rarely survive audits or leadership review.
- Loss of historical context
- Compliance and audit issues
- Inconsistent execution across teams
It also relies on user behavior, making it unreliable long-term.
Native Archiving vs True Storage Optimization
Archiving moves data out of active use but often:
- Keeps files inside Dataverse
- Limits accessibility
- Breaks user workflows
Archiving reduces visibility, not cost.
Why “Do Nothing” Is the Most Expensive Option
Ignoring storage growth leads to:
- Forced capacity purchases
- Poor performance
- Emergency cleanup projects
Rethinking Storage Strategy in Dynamics 365
What a Sustainable Storage Architecture Looks Like
A modern storage strategy separates:
This separation is standard practice in scalable enterprise systems.
- Transactional CRM data (stays in Dataverse)
- Documents and attachments (stored externally)
This preserves CRM integrity while controlling storage growth.
Keeping Attachments Accessible Without Keeping Them in Dataverse
External storage doesn’t mean lost access. With the right architecture:
From a user’s perspective, nothing changes.
- Files remain accessible from CRM
- Links preserve context
- Permissions stay intact
Users continue working as usual without the storage penalty.
Storage Optimization Without Breaking Workflows
The best solutions:
- Require no user retraining
- Maintain audit trails
- Improve CRM performance
Optimization should be invisible to end users.
How Attach2Dynamics Fits Into a Modern Storage Strategy
Offloading Attachments Without Losing CRM Context
Attach2Dynamics moves files out of Dataverse while retaining:
This approach follows the architecture described earlier.
- Record relationships
- Metadata
- Access controls
CRM users see attachments as usual without storing them internally.
Integrating External Storage (SharePoint, Azure Blob, Dropbox)
Organizations can choose cost-effective storage options while keeping Dynamics 365 lightweight and scalable.
Governance, Security, and Compliance Considerations
Externalized storage enables:
- Role-based access
- Long-term retention policies
- Regulatory compliance
Real-World Scenarios Where Storage Optimization Matters Most
Sales Teams with Email-Heavy Communication
Proposals, pricing sheets, and presentations quickly inflate file storage.
Support and Case Management Teams
Screenshots, logs, and evidence attachments accumulate rapidly.
Enterprises Managing Contracts and Invoices
Legal and finance teams require long-term retention without CRM bloat.
FAQs
Why are my Dynamics 365 storage costs increasing every year?
Because attachments stored in Dataverse file storage grow faster than CRM records and are priced separately by Microsoft.
Do email attachments count toward Dataverse storage?
Yes. Email attachments synced into Dynamics 365 consume file storage.
Can I reduce storage costs without deleting files?
Yes. By offloading attachments to external storage while retaining CRM access.
Is SharePoint better than Dataverse for file storage?
SharePoint is more cost-effective for documents but requires proper integration to maintain CRM context.
How do enterprises manage Dynamics storage at scale?
By separating CRM data from document storage using externalized architectures.
Dynamics 365 Storage Costs Explained
