Product

Why Enterprises Need Multi-Layered Cyber Resilience for Microsoft 365

Parag Dharmadhikari, Senior Product Marketing Manager

Microsoft 365 has become a cornerstone for modern enterprises, powering collaboration, productivity, and business continuity. With its extensive application suite—including Exchange Online, SharePoint, OneDrive, and Teams—it’s often viewed as a one-stop solution for all things data. But despite its broad capabilities, many organizations mistakenly believe that Microsoft 365 also delivers comprehensive data protection out of the box.

In reality, Microsoft operates under a Shared Responsibility Model, where Microsoft ensures infrastructure availability, but data security and recoverability remain the customer’s responsibility. This gap in understanding can lead to significant risk exposure, leaving enterprises vulnerable to data loss, ransomware, and internal threats. In fact, studies show that 21% of organizations still experience data loss despite having Microsoft 365 backup policies, 70% of ransomware attacks specifically target backups, and 43% of victims report their backups were encrypted—leaving them without a reliable path to recovery.

This blog aims to debunk these myths and illustrate why a multi-layered cyber resilience strategy is indispensable for enterprises leveraging Microsoft 365.

Understanding the Microsoft 365 Shared Responsibility Model

The Microsoft 365 Shared Responsibility Model is a crucial concept that defines the division of security obligations between Microsoft and its customers. As stated in Microsoft's Documentation:

“For all cloud deployment types, you own your data and identities. You're responsible for protecting the security of your data and identities, on-premises resources, and the cloud components you control.”

shared responsibility model diagram

While Microsoft ensures the infrastructure's uptime, physical security, and application-level availability, the responsibility for data protection, recovery, and compliance lies squarely on the customer.  Regardless of the type of deployment, customers always retain responsibility for managing their data, endpoints, account, and access management. This reality exposes critical gaps often misunderstood or underestimated.

Myths About Microsoft 365 Data Protection & Security

Myth 1: Microsoft 365 Natively Secures All Your Data

A common misconception is that Microsoft 365 automatically secures all your data against threats like ransomware, accidental deletion, or insider misuse. While Microsoft provides capabilities like data replication, geo-redundancy, and high availability, these are designed to ensure service uptime, not to deliver comprehensive data security.

Microsoft 365 lacks native support for immutability, air-gapped backups, and threat detection, which are critical for defending against modern cyber threats. It also doesn’t offer granular, point-in-time recovery, making it difficult to restore specific data exactly as it was before an incident. Without a dedicated backup and cyber resilience solution, organizations are left with serious security gaps that put business-critical data at risk.

Myth 2: Legal Hold Can Be Used as a Backup

Many enterprises assume that placing a user's data under Legal Hold in Microsoft 365 is equivalent to backing it up, but this is a dangerous misunderstanding. Legal Hold is designed for compliance and eDiscovery, preserving data in its current state for legal investigations, not for operational recovery or disaster protection. While it ensures data isn’t tampered with or deleted, it lacks essential backup capabilities like point-in-time recovery, operational restores, and performance-optimized access. It cannot restore an entire mailbox, SharePoint site, or Teams data to a previous state in the event of ransomware, accidental deletions, or insider threats.

Limitations of Legal Hold Compared to Backups:

  • No Granular or Point-in-Time Recovery: Legal Hold retains all versions of a file, but there's no way to selectively restore data from a specific time prior to an incident.
  • No Automation or Disaster Recovery Workflows: It lacks mechanisms to automate large-scale or full-environment recovery in case of a cyberattack.
  • eDiscovery-Only Orientation: It is optimized for legal teams to search, review, and export data, not for IT teams to restore lost business-critical content quickly.
  • Administrative Complexity: Legal Hold requires careful configuration and oversight to ensure that no relevant data is missed. It's also difficult to scale across large environments or dynamically changing user bases.

Relying on Legal Hold as a backup is like relying on your email archive to recover lost project files—it wasn’t built for that purpose. For true operational resilience, organizations must invest in purpose-built backup solutions that allow them to restore exactly what they need, when they need it, without legal intervention or compliance overhead.

Myth 3: Data Retention Policies Protect Data After User Deletion

A common misconception is that Microsoft’s retention policies protect user data after deletion. In reality, when a Microsoft 365 user is removed, all associated data — emails, OneDrive files, and Teams chats — are permanently deleted after a short grace period, unless specific retention policies are pre-configured in the Microsoft Purview Compliance Center. Even then, data is only kept temporarily and isn’t easily restorable.  In large enterprises, it’s especially challenging to ensure that data is correctly mapped to the right retention policies — and that those policies are properly configured, consistently applied, and regularly maintained. 

Microsoft 365 Default Retention Periods:

  • Exchange Online: 30 days for deleted mailboxes; 14–30 days for recoverable items.
  • Microsoft Teams: 30 days for deleted conversations; channel conversations are stored in Exchange Online.
  • SharePoint Online: 93 days in the Recycle Bin
  • Planner: 30 days for deleted tasks and plans.
  • OneDrive: 30 days for deleted content (extendable to 93 days).
  • Entra ID: 30 days for deleted users and groups.

These are lifecycle extensions, not backups. Unlike true backups, there are no point-in-time snapshots or granular recovery option, making recovery impossible after the retention window expires.

Myth 4: Ransomware Protection is Built-In and Comprehensive

Microsoft 365 provides baseline ransomware detection and some recovery options, but these measures are far from comprehensive. Sophisticated ransomware attacks can easily circumvent these basic protections, especially when targeting compromised credentials or exploiting internal access controls.

Where Microsoft's Protection Falls Short:

  • Delayed Detection: Anomaly-based detection may not catch ransomware early, allowing encryption damage to spread.
  • Limited Recovery: OneDrive and SharePoint offer versioning and recycle bin recovery, but these are inadequate for large-scale attacks.
  • Credential Vulnerabilities: If admin credentials are compromised, ransomware can disable protections and alter configurations undetected.
  • User Dependence: Recovery often relies on manual file restoration, which is neither automated nor instant.

For true ransomware resilience, third-party solutions are needed for immutable, air-gapped backups with granular recovery.

Myth 5: Internal Threats Are Rare and Easily Managed

It's a common belief that data loss and breaches are primarily caused by external cyber threats. However, insider threats — both malicious and accidental — account for a significant portion of data loss incidents. These can include anything from accidental deletions by employees to deliberate data theft by rogue admins.

Where Microsoft's Built-in Protection Falls Short:

  • Limited Visibility: Microsoft 365 provides basic audit logs, but tracking internal activity across Exchange, SharePoint, Teams, and OneDrive is often fragmented and lacks real-time visibility. This makes it difficult to spot suspicious behaviors early.
  • Inadequate Access Controls: Native role-based access configurations can be bypassed or improperly set, allowing unauthorized access to sensitive data without clear traceability.
  • No Granular Restore: If a malicious insider permanently deletes or corrupts files, recovery through native tools is limited to broad, less-targeted restores, risking the loss of recent changes.

To effectively combat insider threats, organizations require enhanced monitoring, granular recovery options, and more robust auditing that extend beyond Microsoft's standard capabilities.

Why Multi-Layered Security is Non-Negotiable

Data vulnerabilities are escalating with the rise of sophisticated cyber threats:

  • In 2024, ransomware attacks increased by 64%, with 55% targeting cloud-based applications.
  • 60% of companies that suffer a major data loss shut down within six months (source: National Cyber Security Alliance).
  • A report by Cybersecurity Ventures predicts global ransomware damages to hit $265 billion by 2031, with an attack every 2 seconds.

These alarming statistics highlight the urgency for enterprises to protect their Microsoft 365 data with robust, multi-layered security strategies that involve deploying several protective measures across different layers — backup, infrastructure, recovery, compliance, and monitoring. To combat Microsoft 365 vulnerabilities, enterprises need to extend their protection beyond what Microsoft offers, ensuring backup, recoverability, and stringent monitoring at every layer.

cyber resilience maturity model


Druva’s cloud-native platform empowers enterprises with comprehensive cyber resilience for Microsoft 365 workloads. Druva’s Cyber Resilience Maturity Model serves as a strategic framework to evaluate an organization's readiness to prevent, withstand, and recover from cyber incidents targeting Microsoft 365 environments. Druva leverages this model to systematically assess resilience across five key levels, identify vulnerabilities, strengthen defenses, and build a clear, actionable roadmap for continuous improvement. This structured approach ensures gaps are closed, risks are minimized, and recovery is seamless, even in the face of advanced threats.

Evaluate your Microsoft 365 cyber resilience today! Join us to evaluate your Microsoft 365 cyber resilience score and discover strategies to enhance your security posture.

Conclusion

Enterprises must move beyond the myths of Microsoft 365's native capabilities and embrace a multi-layered approach to data security. Druva’s cloud-native Data Security Platform offers the scalability, security, and simplicity needed to safeguard critical data in the evolving digital landscape.

As cyberattacks grow more sophisticated and recovery costs climb, organizations must strengthen cybersecurity strategies and adopt comprehensive measures beyond traditional defenses. Druva's Cyber Resilience Maturity Model guides you through five levels to secure backups, enhance threat detection, close gaps, and strengthen defenses, boosting cyber resilience for faster recovery.

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