On July 1, 2025, M-Files — the enterprise content management (ECM) vendor — announced a deepening of its strategic partnership with Microsoft. M-Files will now use Microsoft’s SharePoint Embedded as its foundational document repository.  

M-Files differentiates itself in the ECM market with its strong metadata-first foundation, focus on knowledge-work intensive verticals like audit or consulting, and solutions for complex document management needs like manufacturing or engineering. SharePoint Embedded, launched in mid 2024, is an API-only, “headless” edition of SharePoint intended to be used by independent software vendors or enterprises building their own document-centric applications.  

What This Means For M-Files Customers 

    • M-Files cloud edition customers in the Microsoft 365 ecosystem. M-Files is now a more fully integrated experience in M365. M-Files documents will integrate more seamlessly into the digital workplace, using the same storage backend as M365 applications inside the customer’s existing tenant. M-Files documents can take advantage of a broader set of Microsoft’s capabilities including coauthoring, integration with MS Teams and calendars, governance by Purview, and access to M365 Copilot. The migration effort should be minimal: M-Files will manage the migration of existing documents from their existing Azure storage to SharePoint Embedded. Admins only need to activate their M-Files application within the Microsoft admin console. M-Files managed documents won’t add to a customer’s overall M365 storage volume limit.  
    • M-Files cloud edition customers in the Google Workspace ecosystem. For the relatively small percentage of M-Files customers not using M365, nothing will change. Their M-Files documents will remain in Azure storage.  
    • M-Files customers deployed on-premises. For clients deployed on-premises, nothing will change — M-Files will continue to support its on-premises edition.  

Why This Matters For The Overall ECM Market 

Document storage and basic repository services are commoditized. SharePoint Embedded is an example of a true content platform, which Forrester defines as: 

Software platforms architected specifically for the design, development, and delivery of document-, content-, or process-rich applications. Content platforms enable the decoupling of repository, application, and UI layers and reveal services and APIs for application creation and integration 

Vendors need to compete at a higher level with horizontal and vertical solutions that address customer needs. Years ago, at a Microsoft Ignite conference, I had a conversation with a senior member of the SharePoint product team, and he relayed that their vision was to ensure “no file left behind”. That comment stuck with me. SharePoint Embedded is another tactic to execute on that vision. Unstructured data — aka content — is gold to AI and Microsoft wants it. 

My Prediction? 

Within the next year we’ll see at least one other ECM vendor follow suit and adopt SharePoint Embedded for its foundational repository services. Vendors with a focus on specific vertical markets that want to deliver solutions to their customers — and that are already aligned to the Microsoft ecosystem — are the top candidates to make that move. 

Forrester clients can book a guidance session or inquiry with us to discuss further.