An automated information lifecycle management (ILM) system for network storage automatically searches a network storage system to identify data items stored therein. The network storage system includes multiple data storage facilities of different types coupled to a network. The ILM system automatically classifies each of the data items into a category of multiple data categories, and automatically optimizes each of the data items to a particular data storage facility of the multiple data storage facilities, according to the category into which the data item was classified. The ILM system may also automatically discover and detect storage devices added to the network and assign them to the proper storage class, for storing data of the corresponding category. The ILM system further may automatically determine or predict when additional storage capacity is needed for any particular class of storage and may alert a user accordingly and/or free up additional storage capacity.