Both options protect SharePoint data beyond the 93-day native recycle bin window. The right choice depends on how your organisation purchases software, where your recovery workflows sit today, and how deep your compliance retention requirements go. The table below captures the key differences at a glance.
| Dimension | Microsoft 365 Backup | Third-Party Backup (e.g. Veeam, AvePoint) |
|---|---|---|
| Purchase model | Add-on to existing M365 subscription; billed per GB protected per month | Separate vendor subscription; typically per-user per-month or per-GB tiered |
| Workloads covered | SharePoint Online, OneDrive for Business, Exchange Online | Varies by vendor; most cover SharePoint, OneDrive, Exchange, and Teams; some add Planner and Viva |
| Retention window | Up to 1 year (rolling restore points) | Configurable; most support 3-7 years with tiered cold storage options |
| Restore granularity | Site-level and item-level restore for SharePoint and OneDrive | Item, folder, library, and site-level; some tools support individual list-item granularity |
| Admin interface | Microsoft 365 admin center and Microsoft Purview | Separate vendor portal; some offer Microsoft 365 admin center integration via partner connectors |
| Compliance and e-discovery | Native integration with Microsoft Purview retention policies and e-discovery | Varies; better tools include their own legal hold, compliance export, and audit trail |
| Ransomware recovery | Site-level rollback to a clean restore point before the event | More flexible; restore individual file versions or entire libraries independently of each other |
| Data residency | Backup data stays within Microsoft's data centres in your chosen region | Depends on vendor; some store backups in your own Azure subscription or on-premises |
| Air-gap / offline copy | Not available; all data stays within Microsoft 365 infrastructure | Some tools support export to external storage or tape for air-gap compliance requirements |
| Multi-tenant management | Per-tenant; no centralised multi-tenant backup console | Most enterprise tools offer a centralised console for MSPs managing many tenants |
| Licensing complexity | Low: one vendor, one invoice, one support channel | Medium: adds a second vendor relationship but separates backup from the platform being backed up |
What Microsoft 365 Backup covers
Microsoft 365 Backup, introduced in 2024 and expanded to full workload coverage in 2026, keeps rolling restore points for SharePoint Online, OneDrive for Business, and Exchange Online. Activation happens entirely through the Microsoft 365 admin center. No third-party software is installed, no data leaves Microsoft's infrastructure, and the billing appears on the same invoice as your existing Microsoft 365 subscriptions.
For Microsoft-centric IT teams, the appeal is straightforward: one vendor relationship, one support channel, and a restore workflow that runs inside the Microsoft 365 admin center and Purview console that admins already know. For routine recovery scenarios - a user permanently deletes a document folder, a script runs amok and wipes a library, ransomware encrypts a site - M365 Backup covers the job without additional complexity.
The constraints become apparent at the edges. Microsoft 365 Backup currently retains rolling restore points within a one-year window. Organisations with multi-year compliance retention requirements - financial services, healthcare, legal - will often find that one year is insufficient. The backup data also stays within Microsoft's cloud; there is no way to take an offline or air-gapped copy for disaster scenarios that affect Microsoft cloud availability itself. And for MSPs managing tens or hundreds of tenants, there is no centralised multi-tenant backup management console in the Microsoft product today.
Microsoft 365 Backup is the right answer for most SMBs that want protection beyond 93 days without adding a new vendor. For regulated industries with long retention requirements, or for MSPs needing centralised management, third-party tools still lead on flexibility.
Where third-party backup tools fit
Third-party backup tools such as Veeam Backup for Microsoft 365 and AvePoint Cloud Backup have protected SharePoint environments for years, and in 2026 they remain strong choices for specific scenarios even with a native Microsoft option now available.
The case for third-party tools is strongest when one or more of these conditions apply:
- Multi-year retention is required. Most enterprise third-party tools support 3-7 year configurable retention with automatic tiering to cheaper cold storage. Financial services and healthcare organisations frequently need 5-7 year minimum retention to satisfy regulatory requirements. One year is not enough for those environments.
- Air-gap or data sovereignty requirements exist. Some regulated environments or government contracts require a backup copy that sits physically or logically separate from the production platform. Third-party tools that can write to your own Azure subscription, on-premises storage, or tape achieve this; M365 Backup cannot.
- Broader workload coverage is needed. Teams channel messages, Planner tasks, and Viva Engage content are not fully covered by Microsoft 365 Backup. Third-party tools that include these workloads give a more complete picture of tenant data protection.
- MSP centralised management matters. For managed service providers running backup as part of a client service offering, centralised multi-tenant consoles from vendors like Veeam and AvePoint make operational management practical. The per-tenant M365 Backup model requires logging into each client's admin center separately.
- Cross-tenant restore is needed. Third-party tools can restore SharePoint content to a different tenant - useful for migration testing, forensic investigation, or spinning up a replica environment. M365 Backup restores only within the same tenant.
The trade-off is vendor complexity. A third-party backup tool adds a second licence agreement, a second support relationship, and connectors or agents that must be maintained as Microsoft 365 APIs evolve. For organisations that want to minimise their vendor surface area, this is a genuine cost.
When to use which: decision matrix
| Scenario | Recommended fit |
|---|---|
| SMB, Microsoft-first, needs protection beyond 93 days | Microsoft 365 Backup |
| Regulated industry requiring 3+ year retention | Third-party backup |
| Need to back up Teams channel messages alongside SharePoint | Third-party backup |
| Air-gap or offline backup copy required | Third-party backup with external storage target |
| Restore SharePoint content to a different tenant | Third-party backup |
| Simple ransomware recovery for SharePoint and OneDrive | Either; M365 Backup is simpler to activate |
| Budget-conscious, want one vendor for everything | Microsoft 365 Backup |
| MSP managing backup for multiple client tenants | Third-party backup (centralised multi-tenant console) |
| Data must remain in customer-owned infrastructure | Third-party backup with customer-controlled storage target |
Where ShareMaster fits in the picture
ShareMaster is not a backup product. For everyday file recovery within the 93-day native retention window, Recycle Master indexes the SharePoint recycle bin with searchable filters and bulk restore, covering the vast majority of routine recovery tickets without any additional licensing.
The hierarchy is straightforward. Recycle Master handles routine in-window recoveries. When something falls outside the 93-day window, M365 Backup or a third-party tool is the right escalation path. See also the recycle bin vs Microsoft 365 Backup comparison for a deeper look at where native SharePoint retention ends and backup products begin, and the step-by-step recovery guide for the everyday ticket workflow.
Frequently Asked Questions
Does Microsoft 365 Backup replace the SharePoint recycle bin?
No. The recycle bin is a native SharePoint feature included in all plans; M365 Backup is a paid add-on. They cover different scenarios: the recycle bin handles everyday accidental deletions within a 93-day window; M365 Backup handles events that fall outside that window - ransomware, mass corruption, or recovery needs where 93 days has already passed.
How much does Microsoft 365 Backup cost for SharePoint?
Microsoft 365 Backup is priced per gigabyte of protected content per month. The current rate is visible in the Microsoft 365 admin center under Billing. Third-party tools are typically priced per user per month, which makes direct comparison non-trivial for tenants where storage consumption is uneven across users.
Can third-party backup tools restore individual SharePoint files faster than M365 Backup?
For individual file restores, the two approaches are comparable in speed. The differences emerge at scale: restoring entire site collections, bulk-recovering hundreds of files, or running compliance-driven e-discovery exports are scenarios where the filtering depth and export flexibility of third-party tools often provides a practical advantage over M365 Backup's admin-center interface.
What does ShareMaster do in a backup and recovery scenario?
ShareMaster handles recovery within the standard 93-day native retention window. Recycle Master's indexed search and bulk restore capabilities make it practical to find and recover specific files across all your sites without scrolling through thousands of bin entries. For anything older than 93 days, M365 Backup or a third-party backup tool is the right escalation path - ShareMaster does not duplicate that role.