At some point, every growing organization faces the same question: “Do we need a cloud document management system?”
Usually, this comes after a near-miss — an audit that took too long, a compliance gap someone flagged, or a frustrated employee who spent an hour looking for a contract that should have taken 30 seconds to find.
The instinct is to start shopping. But before you add another vendor to the stack, it’s worth asking: what do you already have?
If your organization runs on Microsoft 365, the answer is more than you think.
What to Look for in a Cloud Document Management System
A capable cloud DMS should cover these fundamentals:
Security and Access Controls
Encryption at rest and in transit, multi-factor authentication, role-based permissions, and audit trails to track who accessed what.
Document Storage and Organization
Centralized storage with logical structure — folders, libraries, metadata — so content is findable without tribal knowledge.
Search and Retrieval
Full-text search, metadata filtering, and the ability to locate documents across the entire system, not just one folder.
Version Control
Automatic versioning that tracks every edit, with the ability to restore previous versions and compare changes.
Collaboration
Real-time co-authoring, commenting, and sharing — without emailing attachments back and forth.
Workflow Automation
Routing documents for review, approval, or signature without manual handoffs.
Compliance Support
Retention policies, disposition workflows, and audit-ready logs for regulated industries.
If you’re evaluating cloud DMS vendors, this is the checklist. And Microsoft 365 checks every box.
How Microsoft 365 Delivers Cloud Document Management
SharePoint Online and OneDrive aren’t just file storage — they’re a document management platform when configured properly.
Security
SharePoint encrypts data at rest and in transit using TLS. Add multi-factor authentication, conditional access policies (restrict by location or device), sensitivity labels for classification, and Data Loss Prevention (DLP) policies to detect and protect sensitive content.
Microsoft 365 holds SOC 2, ISO 27001, HIPAA, and GDPR certifications — the same standards you’d require from any enterprise vendor.
Storage and Organization
SharePoint document libraries support folders, metadata columns, content types, and custom views. You can organize by department, project, document type, or any structure that fits your workflows.
Search
Microsoft Search indexes content across SharePoint and OneDrive. It searches file names, content, and metadata — and respects permissions, so users only see what they’re authorized to access.
Version Control
Every document edit creates a new version automatically. Users can view history, compare versions, and restore previous iterations. Administrators can set limits on how many versions to retain.
Collaboration
Multiple users can edit Word, Excel, and PowerPoint files simultaneously. Changes appear in real time. Comments, @mentions, and sharing controls make collaboration seamless — and it all integrates with Teams.
Workflow Automation
Power Automate connects directly to SharePoint for approval workflows, notifications, task assignments, and document routing. No custom development required for standard flows.
Compliance
Microsoft Purview manages retention policies and labels. You can define how long content is retained, trigger disposition reviews, and maintain audit logs for regulatory requirements.
This isn’t a workaround. It’s enterprise-grade document management — included in licenses you’re already paying for.
The Hidden Cost of Tool Sprawl
Here’s the part that rarely makes the vendor comparison spreadsheet: the cost of adding another tool.
Mid-sized organizations use an average of 80–100 SaaS applications. Every new platform adds:
- Another license to manage — and another invoice to process
- Another system to secure — with its own access controls, encryption, and compliance posture
- Another place for data to live — creating silos that fragment your information
- Another interface to learn — which slows adoption and increases support requests
When documents live in multiple systems, you lose the “single source of truth” that document management is supposed to provide. Search doesn’t reach everywhere. Permissions don’t align. Compliance becomes a patchwork of policies across platforms.
And then there’s the security risk. Every additional tool expands your attack surface. Data scattered across platforms is harder to protect, harder to audit, and harder to recover if something goes wrong.
Consolidation isn’t just about cost savings — it’s about control.
How to Consolidate Document Management in Microsoft 365
If you’re ready to reduce tool sprawl, here’s the path forward:
- Audit What You’re Using
List every tool where documents live: Dropbox, Google Drive, Box, legacy file servers, department-specific platforms. Identify what’s actually being used — and what’s just still running. - Map Features to Microsoft
For each tool, ask: what does it do that SharePoint doesn’t? In most cases, the answer is “not much.” The gap is usually configuration, not capability. - Plan the Migration
Don’t lift-and-shift. Use the migration as an opportunity to restructure. Clean up source data, establish naming conventions, and define metadata before moving content.
Best practice: migrate in phases, starting with high-value or frequently accessed content. Package files appropriately (250 files or 100–250 MB per batch) to optimize throughput and avoid throttling.
- Set Up Governance First
Before content arrives, establish the rules: site structure, permissions model, retention policies, and content ownership. This prevents SharePoint from becoming the same mess you’re migrating away from. - Retire Redundant Tools
Once content is migrated and validated, decommission the old platforms. Consolidate licenses. Communicate the change clearly so employees know where to go. - Train — Briefly
Your team already knows Microsoft. A short session on “where things live now” is usually enough. Focus on the structure, not the software.
When a Third-Party Tool Still Makes Sense
Let’s be realistic: Microsoft 365 doesn’t cover every use case.
If your organization requires specialized capabilities — legal document management with chain-of-custody, CAD/BIM file handling, or deep integration with industry-specific platforms — a dedicated tool might be necessary.
But even then, the Microsoft stack often handles the majority of your needs. A specialized tool can fill the gap without replacing everything. And because most modern platforms integrate with SharePoint, you’re not choosing one or the other — you’re deciding how much of each you need.
The goal isn’t “zero vendors.” It’s “no unnecessary vendors.”
The Business Case for Consolidation
When you consolidate document management into Microsoft 365, here’s what changes:
- Lower costs — fewer licenses, fewer contracts, less administrative overhead
- Simpler security — one platform to secure, monitor, and audit
- Better search — content is indexed in one place, findable from anywhere
- Easier compliance — retention and governance managed through a single system
- Faster adoption — employees already know Microsoft; there’s nothing new to learn
For mid-sized organizations, this isn’t about cutting corners. It’s about using what you have before buying what you don’t need.
The Bottom Line
You don’t need another cloud document management vendor. You need to unlock what’s already in your Microsoft 365 tenant.
SharePoint provides storage, organization, search, versioning, and collaboration. Microsoft Purview adds retention and compliance. Power Automate handles workflows. It’s all there — waiting to be configured.
Before you add another tool to the stack, take a hard look at the one you’re already paying for.
We help organizations consolidate document management inside Microsoft 365 — reducing tools, costs, and chaos.
Let’s talk about what’s possible with your existing licenses.