Don’t Leave Your Data to Chance: Why Microsoft 365 Still Needs Managed Backup 

Your finance team accidentally deletes a crucial folder in SharePoint. Weeks later, during an audit, you discover it contained vital tax documents. Microsoft’s retention window has closed, and there’s no backup. The data is gone – along with your peace of mind.  

Or you arrive at work to find your entire Microsoft 365 environment locked by ransomware. Emails, OneDrive files, Teams chats—all encrypted. The attackers demand a six-figure ransom. Without a clean, offsite backup, your only options are to pay up or start from scratch. 

Maybe you’re in a regulated industry. Your legal team needs to retrieve a client’s communication history from two years ago, but Microsoft 365’s default retention policies don’t go back that far. Suddenly, you’re facing compliance fines and reputational damage. 

These aren’t just hypothetical nightmares—they’re real-world risks faced by organisations every day. Data loss in Microsoft 365 is more common than you think, and the consequences can be devastating: lost productivity, failed audits, spiralling recovery costs, and permanent reputational harm. 

Whether you represent a business, oversee IT operations, or work within a regulated industry, it is important to understand the significance of comprehensive data protection. 

In this short blog, we uncover why relying solely on Microsoft 365’s built-in features can leave your organisation vulnerable and explain the crucial role of managed backup in meeting compliance and safeguarding your business continuity. Read on to discover the essential facts every Microsoft 365 user should know. 

Microsoft Doesn’t Back Up Your Data the Way You Think 

Microsoft 365 is a widely used business applications that supports productivity, email, document management, meetings, and collaboration for many organisations. Although it is designed to be reliable, it does not include comprehensive data protection. With increasing geopolitical changes and increasing cyber threats, implementing a managed backup service isn’t just recommended it’s now a necessity. 

Microsoft 365 keeps its platform running, but it doesn’t guarantee recovery of your data. This is because Microsoft operates under a shared responsibility model: while they manage the infrastructure, security of the cloud, and ensure service availability, you are responsible for protecting and retaining your own data within the platform. If a file is deleted, corrupted, or lost due to a cyberattack, Microsoft’s built-in tools may not help restore it to its original state or recover it after a certain period. 

Example: a well know company accidentally deleted months of Teams chat data for 145,000 employees due to a misconfigured retention policy. Because this fell under the customer’s responsibility in the shared model, Microsoft couldn’t recover it. 

Data Loss Happens More Often Than You Think 

Data loss in Microsoft 365 is not a rare occurrence—it is a growing risk facing organisations of all sizes. In 2025, a staggering 30.2% of organisations reported losing data within Microsoft 365, a significant jump from 17.2% the previous year. This sharp rise highlights not only the increasing reliance on cloud platforms but also the expanding threat landscape. Whatmore, a remarkable 81% of IT professionals have acknowledged experiencing data loss in Microsoft 365 at some point, underlining that no business is immune to these incidents. 

The consequences of such data loss can be devastating. According to industry research, 94% of companies that experience major data loss never fully recover, with many facing permanent reputational and financial damage. The impact can extend beyond lost files, affecting customer trust, regulatory compliance, and business continuity. 

Real-World Example: 

Consider the case of a small accounting firm in Connecticut. The company lost three years’ worth of vital client files when a former employee maliciously deleted everything from SharePoint. Without a dedicated backup system in place, all their efforts to recover the data proved futile. This event not only disrupted their daily operations but also put client relationships and compliance at severe risk. 

These incidents are not isolated. Accidental deletions, internal threats, misconfigured settings, and external cyberattacks can all result in data being irretrievably lost. Built-in Microsoft 365 features are simply not designed to address every scenario or guarantee full recovery, especially when data has been permanently deleted or overwritten. 

In summary, data loss within Microsoft 365 is a real and growing threat. Relying solely on Microsoft’s native protections leaves organisations exposed to potentially catastrophic losses. Proactive measures, such as implementing a managed backup solution, are essential to ensure business resilience and peace of mind. 

Compliance Requires Long-Term Data Retention 

For organisations operating in highly regulated sectors—such as healthcare, finance, and legal—adhering to strict data retention requirements is not just best practice, but a legal necessity. These industries are bound by regulations like the General Data Protection Regulation (GDPR), the Health Insurance Portability and Accountability Act (HIPAA), and the Financial Industry Regulatory Authority (FINRA), all of which mandate that certain records and communications be preserved for several years, sometimes even decades. 

However, Microsoft 365’s default data retention policies are limited, typically retaining deleted items for only 30 to 93 days. After this period, emails, files, and other critical data may be permanently deleted from the system, making it impossible to retrieve them through Microsoft’s native tools. This short retention window falls far short of what’s required for compliance with most regulatory frameworks and can expose organisations to significant risks if they are unable to produce records during an audit or investigation. 

Implementing a managed backup solution addresses these challenges by enabling you to: 

• Retain data for the legally required duration: Customise retention periods to match industry regulations, ensuring that no vital information is lost prematurely. 

• Retrieve information swiftly for audits or legal requests: Search and recover specific records or communications quickly, simplifying responses to audits, freedom of information requests, or legal proceedings. 

• Protect against regulatory fines and reputational harm: Demonstrate compliance with data retention laws, reducing the risk of costly penalties and preserving your organisation’s reputation. 

• Support business continuity and peace of mind: Maintain uninterrupted access to essential records, even in the event of accidental deletion, internal threats, or cyberattacks. 

Ultimately, relying solely on Microsoft’s built-in retention capabilities is insufficient for organisations with long-term compliance obligations. By adopting a managed backup solution, businesses can confidently meet regulatory requirements, safeguard their data, and avoid the significant legal and financial repercussions associated with non-compliance. 

Cyber Threats Are Growing 

According to the IBM Security “Cost of a Data Breach Report 2023”, the financial impact of data breaches on UK organisations can be staggering. The report highlights that large-scale security incidents may cost businesses up to £4.4 million per breach, encompassing direct expenses such as detection, escalation, notification, and post-breach response, as well as indirect costs like reputational damage and lost business. These figures underscore the importance of robust data protection strategies, including comprehensive backup solutions, to mitigate the risk and minimise the fallout from cyberattacks and malicious data loss. Investing in proactive measures not only safeguards sensitive information but also helps organisations avoid the significant legal and financial consequences outlined in the report. 

Ransomware and phishing attacks are on the rise. If your Microsoft 365 data is encrypted or deleted, you need a clean backup to restore it. 

1 Source: Federation of Small Businesses, “Cyber Resilience: How to protect small firms in the digital economy” (2023). 

2 Source: IBM Security, “Cost of a Data Breach Report 2023” (UK figures). 

 IT Teams Need Simplicity 

Managing backups manually can be a laborious and resource-intensive process for IT teams. The constant demands of scheduling, monitoring, and troubleshooting backups can divert valuable time and attention away from more strategic initiatives. With the growing complexity of IT environments, particularly in organisations using Microsoft 365, ensuring consistent and reliable data protection is a significant challenge. 

Adopting a managed backup service transforms this process by: 

• Automating backups: Scheduled, automated backups mean IT staff no longer need to remember or manually initiate backup jobs, reducing the risk of missed data and ensuring regular, up-to-date protection. 

• Monitoring for issues: Continuous monitoring detects problems such as failed backups or storage issues in real time. This proactive approach allows for quick resolution before data loss or compliance exposure occurs. 

• Providing expert support: Access to a dedicated team of backup specialists means that any queries or incidents can be resolved swiftly, without the need for in-house expertise or lengthy troubleshooting. 

By leveraging a managed service, IT teams can eliminate the administrative burden of backup management. This not only saves considerable time but also reduces the risk of human error, data loss, and compliance breaches. Ultimately, it enables IT professionals to focus on core business needs and innovation, confident that organisational data is secure and recoverable. 

Why SCC 

SCC is a certified Microsoft partner with a proven track record in delivering robust backup and data protection solutions for Microsoft 365 environments. Our team of specialists holds advanced Microsoft accreditations, demonstrating deep technical proficiency and up-to-date knowledge of Microsoft cloud technologies. We work closely with Microsoft to ensure our services align with best practices and leverage the latest advancements, helping clients maximise the value of their Microsoft 365 investment while maintaining the highest standards of data security and compliance. 

SCC helps you protect your data, meet compliance, and keep your business running—without the stress. 

SCC provides a straightforward, secure, and highly scalable managed backup solution tailored specifically for Microsoft 365 environments. Here’s why organisations trust SCC to safeguard their data: 

• Comprehensive Protection: Safeguard all your critical Microsoft 365 services, including Exchange, SharePoint, OneDrive, and Teams, ensuring nothing is left vulnerable. 

• Rapid Recovery: Benefit from fast restoration capabilities in the event of accidental deletions, ransomware attacks, or system failures, ensuring minimal disruption to your business operations. 

• Compliance-Ready: Customisable retention policies help you meet regulatory requirements with ease, keeping your data secure and auditable. 

• 24/7 Monitoring and Support: Enjoy round-the-clock monitoring and access to expert support, so issues are resolved promptly and proactively. 

• Flexible Plans: Choose from a range of plans designed for both Midmarket and large enterprises, allowing you to scale as your business grows. 

To find out more or to book time with one of our backup specialists contacts us here