By default Document Attachment is stored in Azure Data Storage with 40 gigabytes (GB) of free storage. Alternatively, D365 can be configured to store Document Attachments in SharePoint.
Azure Blob Storage should be a consideration if you are storing simple document attachment file types such as Bitmaps, JPEG’s etc.
SharePoint should be a consideration if you are storing document attachment file types such as Word Documents, Excel Files etc.
Advantages of using SharePoint:
- If your business process requirements include storing document attachments against records in D365 you may chose to store these files in SharePoint to take advantage of features such as discoverability
- If the Power Platform tooling such as Power Automate (PA) is being used you can trigger PA flows from SharePoint when an attachment is created or updated
Additional information can be found in the link below with some Frequently Asked Questions
Additional information relating to Azure Pricing for Additional Azure Blob Storage can be found using the link below: