Following are some compelling reasons on why folders in SharePoint should be avoided. The list is geared more towards end-users and folder proponents and could be used as a business case on why document library should be setup using meta-data. So here it goes:
1. USABILITY
Nested folder structure is only known to the person who created it. Also, too many sub-folders tend to “hide” things.
2. URL LENGTH LIMITATION
SharePoint adds all folder and sub-folder names to URL. Overall URL length is limited to around 260 characters. You are out of luck if you create too many sub-folders.
3. FILE URL
Moving file from one folder to another means change of file URL.
4. SECURITY
Maintaining Security by folders in SharePoint is an administrative nightmare.
5. USER EXPERIENCE
User Experience (navigation, finding the documents) just stinks with folders
6. FILE DUPLICATION
With folders you can deposit multiple copies of same file into different locations – not a good thing when you try to organize documents and data in the first place!
7. ONE LONELY VIEW
There is another reason NOT to user folders. With folders, you get one view: the folder view. Using metadata, you can create unlimited number of views by whatever properties you have setup (i.e. organize documents by date, by customer, by project, etc.) So the document browsing experience is much better-off.
8. CAN’T SORT & FILTER
Since your files are buried in the folders, you can’t really benefit from sorting and filtering capabilities of document library headers (unless of course you are just sorting and filtering in the particular folder).
9. CHANGE IS HARD
It’s hard to change folder structure, while changing metadata is easy.
10. LOST DOCUMENTS
You can “lose” documents when placed in the wrong folder. Additionally, Also, too many sub-folders tend to hide things, making it impossible or too time-consuming for users to find a particular document.
11. NAVIGATION
When you are in a particular sub-folder, there is no way to tell in which folder you are at any given time, and no easy way to navigate to the parent folder (there is no breadcrumb on folder navigation menu available)
12. COST
If you are essentially recreating nested folders you had on file share, by using SharePoint, you have got yourself one expensive file share.
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