File versions

Understanding SharePoint Online Versioning

by Tony Redmond

SharePoint Online document libraries keep 500 versions of files by default. The minimum recommended by Microsoft is 100. But why are so many versions kept? The reason is that it leads to better recoverability and underpins features like AutoSave and co-authoring. You might be tempted to reduce the number of versions, but why? I can't come up with a good answer.