Not available to SharePoint Online customers. Shredded storage is essentially the chunking of data—only differences are saved. That means if versioning is enabled and someone makes a change to a document, only changes “shreds” are added to the storage footprint of that document. Shredded storage improves I/O performance by reducing how much information retrieved by the web server from the content database. Shredded storage removes duplicate files, and improves data transmission speed.
Foundation - Yes; Standard - Yes; Enterprise - Yes.