Microsoft will role out a new model for Dynamics 365 cloud storage.

Microsoft has introducing a new model for data storage for Dynamics 365 that should make the platform more competitive.

Up until now, each Dynamics 365 tenant had a storage limit of 10GB, with an additional 5GB given per 20 enterprise licences a company holds. When companies exceed this storage, Microsoft levies a flat rate charge per extra GB taken.

From a customer's point of view, there are a few issues with this. For a start, Microsoft has been enticing users to take on more and more Dynamics 365 apps, such as PowerApps and other add-ons. While they provide useful expansion of Dynamics 365 functionality, these apps eat into a company’s storage limit.

Secondly, the additional storage costs for Dynamics 365 are expensive at around $10 a month per GB. Not only is this well above standard commercial rates, but other Microsoft cloud products such as SharePoint Online also come with 1TB of storage. It's not surprising that companies and software providers have found ways of utilising Dynamics CRM storage in locations external to Microsoft’s cloud.

Change is therefore well overdue.

What Are The Changes To Dynamics 365 Storage?

Microsoft has restructured data stored in Dynamics 365 into three areas. Each will have the following new storage limits per tenant:

Common Data Service for Apps Database Capacity – For database and record data – 10GB

Common Data Service for Apps Files Capacity – For Customer Engagement apps, PowerApps, and any documents, videos or other types of file that a company stores in Dynamics 365 – 20GB

Common Data Service for Apps Log Capacity – Storage for logs, changes, security role updates and access data – 2GB

For each Dynamics 365 Enterprise user licence, there is also an extra 250MB of Common Data Service for Apps Database Capacity. There is also  2GB of Common Data Service for Apps Files Capacity.

The Power Platform will have a report on current storage entitlement and capacity.


Data changes should entice companies to change Dynamics 365 storage. It could also increase their interest in solutions such as Power Apps.

Changes also make it more beneficial for companies to add additional users, while dissuading them from storing files accessed by Dynamics 365 on systems separate to Microsoft’s cloud.

From 1 April to 31 December, organisations renewing their Dynamics 365 licences will be able to choose whether they move to the new storage setup or stay on the existing model. Personally, we can’t see the value with sticking with the original deal. Any additional capacity required above the new data limits will still be charged at the same rate.

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