Sharepoint version history

Learnt something new yesterday, and thought I would share.
I was expecting Versions of documents in Sharepoint Version history to be stored as differences between the different versions. Similar to how Git works.
This proved to be a wrong assumption.

If you have a 100 MB Word document, and start editing it. When the Auto Save feature saves, and a new version is created, you end up with two 100 MB word documents.
Ten versions = 10 x 100 MB Word documents…1 GB of Version history, consuming your Sharepoint
storage even though in Windows Explorer with ODfB the file only shows it taking up 100 MB.

You can see the effect in Sharepoint Storage metrics, drill down and you will see how much storage each version is consuming.