Folders vs. Metadata

I first blogged about this topic in 2013, long before we had modern SharePoint and Copilot AI. And while many things changed with SharePoint and the whole Microsoft 365 platform, one thing never disappointed: the debate over Folders vs. Metadata. Some issues we had back in 2015 got mitigated and resolved over the years (search, for example). So, I thought I would present a few arguments for each method.

Folders

Other things equal, the most significant advantage of folders is that they offer users a familiar interface. Though SharePoint is not a file share or network drive, and you must organize your content via sites and libraries, once inside the given library, it is all folders. And most of us have become familiar with them through breastmilk. Below, I would like to outline the specific pros and cons I can think of.

Pros

• Familiar interface
• Does not require any additional setup
• Ability to create unique permissions for a folder
• Freedom in terms of naming conventions
• Ability to view the same hierarchy when synchronized to Windows Explorer via OneDrive Sync
• Folder indexing mitigates the 5,000-view-item limit

Cons

• Deep folder hierarchies can lead to 400-character limits
• Inadvertent creation of file duplicates
• Impossible to enforce any naming convention
• Just one way to view the hierarchy

Metadata

Metadata is often a mysterious concept to many, even though we use it in real life all the time. When we shop for useless stuff on the internet (something I do when I get bored or drink too much), we filter the items by size, color, brand, cost, etc. That’s all metadata. I even wrote a post many years ago on how to explain metadata to your employees. In SharePoint, we can also create metadata and tag files instead of using folders. This would allow us to folder, group, and sort items in any way we want.

Metadata was a winner in the early days of SharePoint; however, lately it has taken a hit due to several factors, which I outlined in this article. However, this is just my opinion: I think we will see a resurgence of the metadata approach soon, primarily due to Copilot AI’s advances and capabilities.

Let me now outline the pros and cons of the metadata approach.

Pros

• Ability to set a standard naming convention
• Ability to create views with custom sort, group, and filtering
• Ability to color-code metadata based on different scenarios
• Ability to set up rules (link) based on metadata changes
• Mitigates the 400-character URL limit
• Improved search experience (metadata can be used for keyword searches)
• Prevents file duplication (does not allow for the same file name in the folderless library)

Cons

• Requires upfront setup
• Due to a lack of folders, it is prone to the 5,000-view item limit
• Requires users to tag content for this approach to make sense (this will be resolved with the Knowledge Agent AI capabilities)
• Requires user education/training before it can be used successfully
• Does not make much sense if the data is synchronized locally on Windows Explorer (since metadata columns do not exist in Windows)
• Can’t set security on files based on metadata

So you are probably wondering which method I recommend and what is better, folders or metadata? The answer comes down to specific use cases and personal preferences. I encountered situations where clients wanted to go 100% metadata on all the content. That is never a good idea and not practical. Likewise, I disagree that you should never consider metadata. It works really well with structured content like project documents, policies, contracts, etc. Moreover, with Copilot’s potential to auto-tag, this would resolve the biggest complaint about metadata: users have to set up metadata and then tag things all the time.