The iPhone is an amazing device and each new iteration of iOS brings a wealth of extra features to users, but its not always that easy to access, mainly due to storage issues.
Users often had to have multiple gigs free in order to even start the installation, something which was especially difficult for those sporting an 8 gig device, especially given Apple's lack of interest in removeable storage. Thankfull, now there's a solution.
The latest iOS 8.1 patch has significantly reduced the amount of storage needed to update the software. We don't have exact figures, but its good to see Apple responding to complaints like this that effect so many of their users. The iOS 8.1.3 patch is available now and also a number of other issues.
So go forth and update!