Microsoft 365 Backup vs Datto
Datto SaaS Protection is a cloud-to-cloud backup service built for MSPs and organisations that want a separate copy of Microsoft 365 data. The comparison with Microsoft 365 Backup comes down to who holds the data, what workloads are covered and how pricing behaves as the tenant grows.
Head-to-head
| Factor | Microsoft 365 Backup | Datto |
|---|---|---|
| Pricing model | Per GB protected per month | Per user per month |
| Representative rate | $0.15 per GB | $2.63 - $7.00 per user |
| Exchange, OneDrive, SharePoint | Yes | Yes |
| Teams chat | No | Yes |
| Max retention | 1 year | Configurable, multi-year |
| Storage target | Microsoft cloud only | Datto cloud |
| Restore target | Same tenant | Same tenant |
| MSP multi-tenant console | No | Yes |
When Microsoft 365 Backup wins
Native backup is simpler for a single tenant that does not need Teams chat coverage or long-term retention. There is no external console, no per-user licence to track, and restores are fast because the data stays in Microsoft's cloud. For small to mid-sized tenants with predictable storage, it is often the lower-cost option.
When Datto wins
Datto suits MSPs and enterprises that want a managed backup copy outside Microsoft, multi-year retention, and coverage of Teams chat. The per-user pricing is predictable for invoicing, and the multi-tenant console makes it easier to manage many clients from one place. Those benefits make sense when the customer is paying for a managed service rather than a raw consumption bill.
Cost reality
Datto's per-user price is easier to quote and forecast. Microsoft 365 Backup's per-GB price is harder to forecast but can be cheaper for tenants where protected storage per user is low. The only reliable comparison is to measure the tenant's Exchange, OneDrive and SharePoint size and compare the native bill at $0.15 per GB against a Datto quote.
Bottom line
Microsoft 365 Backup is a native recovery layer for Exchange, OneDrive and SharePoint with a one-year ceiling. Datto is a separate cloud backup service with broader coverage and longer retention, aimed at MSPs and customers who want a managed copy outside Microsoft's boundary.
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Frequently asked questions
Does Datto cover Teams chat?
Yes. Datto SaaS Protection can protect Microsoft Teams chat data, which Microsoft 365 Backup does not cover.
Is Datto cheaper than Microsoft 365 Backup?
Datto is typically priced per user per month, similar to other SaaS backup tools. For light mailboxes it may be more expensive than the native per-GB rate; for heavy mailboxes the per-user model can be cheaper.
Can Datto store backups outside Microsoft 365?
Yes. Datto keeps backups in its own cloud infrastructure, independent of Microsoft's cloud.
Does Datto support longer retention?
Yes. Datto's default and configurable retention policies can extend beyond the one-year limit of Microsoft 365 Backup.
Which is easier to manage?
Microsoft 365 Backup requires no additional agent or console. Datto is managed through a separate SaaS protection portal, which adds a small step but gives centralised control for MSPs.
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