Microsoft 365 native backup vs third-party backup
Microsoft 365 Backup is a native, per-GB add-on for Exchange Online, OneDrive and SharePoint. Third-party backup products add coverage, retention and storage choices that native backup does not. The right choice depends on which workloads you must protect and how long you must keep them.
What native backup gives you
Microsoft 365 Backup is configured inside the Microsoft 365 admin centre and billed through Azure at $0.15 per GB of protected content per month. It keeps recovery points for up to one year and restores data back into the same tenant. Because the data never leaves Microsoft's cloud, restores are fast and there is no separate infrastructure to maintain.
It is the lowest-friction option for organisations whose needs are limited to Exchange, OneDrive and SharePoint recovery within a one-year window. The trade-off is that Teams chat, multi-year retention, tenant-to-tenant restores and offline copies are not available.
What third-party backup adds
- Teams chat protection.
- Retention beyond one year, often configurable.
- Backups stored outside Microsoft's cloud, including on-premises or another cloud provider.
- Restore to a different tenant or location.
- MSP multi-tenant consoles and per-user billing.
Most third-party products price per user per month, typically in the $2.63 - $7.00 range. That makes budgeting easier but can be more expensive for tenants with small mailboxes and cheaper for tenants with very large archives.
When native backup is enough
Native backup is enough if your recovery requirements are: Exchange Online, OneDrive and SharePoint only; restore into the same tenant; retention of one year or less; and no requirement to keep a copy outside Microsoft. It is also a good fit when you want the simplest possible setup and transparent consumption billing.
When you need a third-party product
Move to a third-party product when any of the following are non-negotiable: Teams chat recovery, multi-year retention, tenant-to-tenant or offline restores, or a copy held outside Microsoft for compliance. MSPs often prefer third-party tools for multi-tenant management and per-user pricing.
Cost comparison
The only fair comparison uses your own numbers. Measure the protected gigabytes across Exchange, OneDrive and SharePoint, then compare the native total at $0.15 per GB against the third-party per-user quote. The cost calculator does the native side of that comparison, including archives and versioning.
Frequently asked questions
What is the difference between Microsoft 365 Backup and third-party backup?
Microsoft 365 Backup is Microsoft's own add-on that protects Exchange Online, OneDrive and SharePoint with a one-year retention limit. Third-party backup products are sold by other vendors and typically add Teams chat coverage, longer retention and the option to store data outside Microsoft's cloud.
Is Microsoft 365 Backup enough on its own?
It is enough for organisations that only need to recover Exchange, OneDrive and SharePoint data within a one-year window and can restore within the same tenant. It is not enough if Teams chat, multi-year retention or an offline copy is required.
Does Microsoft 365 Backup cover Teams chat?
No. Microsoft 365 Backup does not cover Teams chat messages. Most third-party products do.
Can Microsoft 365 Backup retain data longer than one year?
No. The maximum retention is 365 days. For longer retention a third-party product is required.
How do I decide between native and third-party backup?
Start by measuring protected gigabytes in Exchange, OneDrive and SharePoint. Compare the native cost at $0.15 per GB against third-party per-user quotes, then add the coverage requirements that native backup does not meet.
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