What Happens Without Microsoft 365 Backup? A Look at Real Data Risks

Most businesses think that their Microsoft 365 data is safe; after all, it’s all in the cloud, right? But the truth is that Microsoft 365 is a productivity tool and not a backup solution for your data.

Yes, it offers some protection, but not nearly enough to protect your business from major data loss or hacking. Until a critical file vanishes without a trace, most companies don’t realize the importance of backing up their Microsoft data. In this article, we’ll go over what happens when you don’t have a proper backup system in place. Let’s dive right in.

What Microsoft 365 Does and Doesn’t Cover

The risks are real, but they are avoidable since even Microsoft itself recommends having a third-party backup solution. It does have some tools like Recycle Bin, version history and short-form data retention. Although Microsoft’s data retention only lasts up to one year, this is nearly not enough for businesses to comply with the latest GDPR and HIPAA regulations. Those tools are very limited because, as mentioned before, Microsoft 365 is a productivity tool and not a place to store your files permanently. For example, once a file is completely deleted or if too much time has passed, you may be unable to recover it. That's a major problem. As per the Shared Responsibility Model, cloud-based systems like Microsoft are required to keep their systems and infrastructure secure. However, protecting and backing up the data is the responsibility of the customer. Accidental deletion, data corruption or cyberattack–that’s your problem. Third-party solutions step in and fill in the gaps left by Microsoft.

Real World Scenarios

Here are a few real-life scenarios. Picture your employee deleting a folder from OneDrive that contains important company data, highlighting the need for proper Microsoft 365 backup. No one noticed the damage until weeks later. By then, the folder is long gone and unrecoverable. Or the worst case, when your business is targeted for a ransomware attack. Your files get encrypted, and without a proper backup, specifically a Microsoft 365 backup solution, there is no other way to get the files back than paying the hackers. As per the Kaspersky Lab report, 31% of cyberattacks led to IT managers being fired. Nobody wants to risk their job and, more importantly, the company’s confidential data. Sometimes an honest mistake happens, other times, a disgruntled employee either deletes or takes sensitive data out of the company when leaving. In any case, the time taken to identify a breach is on average 261 days, as per IBM’s Cost of a Data Breach Report in 2024.

CloudAlly’s Backup Solution: Features & Benefits

Organizations should be able to quickly restore the availability and access to personal data in the event of a physical or technical incident, as stated in Article 32 of the GDPR. If you don’t have a solution that backs up your Microsoft 365 files, it can be very difficult to restore them later down the line. This is where CloudAlly steps in. It offers automated daily backups for all Microsoft 365 productivity tools. This means your emails, OneDrive files, SharePoint, Teams conversations, calendars, and business contacts remain protected. If something happens to get deleted, it can be quickly recovered, thanks to long-term data retention and unlimited storage. Be it an individual file or an entire email thread–everything can be recovered. With limitless retention, guaranteed recovery, strict encryption, and 11 global data centers, SaaS backup offers 100% compliance and audit readiness. The platform is easy to use and is meant to run seamlessly in the background.

For IT departments, backup isn’t just another thing to add to their ever-expanding to-do lists. It should be a core part of the risk management strategy. IT departments are expected to prevent data losses, ensure smooth business continuity and meet the necessary compliance regulations. But as we found out, relying solely on Microsoft 365’s native tools isn’t enough. Hoping that a Recycle Bin and short retention windows will be of help during big data losses or hacking is foolish. Specialized Microsoft 365 backup software provides long-term data retention, flexible restoring options and security across all services. Exchange, OneDrive, Teams, SharePoint, and more are backed up daily. It saves effort with quick recovery, promotes compliance with regulations, and provides IT teams with the confidence and tools they need to act quickly in case of a data breach. Backup is more than just recovery; it's about being prepared.