Backing up your business data is non-negotiable. The question is not whether you need a backup solution, but which one is right for your organisation. For UK businesses running workloads on Microsoft Azure — or using Microsoft 365 for email, SharePoint, and Teams — the choice often comes down to Azure Backup, Microsoft's native backup service, versus one of the many third-party backup solutions available in the market.
Both options have genuine strengths, and the right choice depends on your specific requirements, budget, compliance needs, and existing infrastructure. This guide provides an honest, detailed comparison to help UK SMEs make an informed decision.
Understanding Azure Backup
Azure Backup is Microsoft's built-in backup-as-a-service offering within the Azure platform. It provides centralised backup management through the Recovery Services vault, supporting a wide range of workloads including Azure Virtual Machines, SQL Server databases, Azure Files, Azure Blobs, and on-premises servers via the Microsoft Azure Recovery Services (MARS) agent.
For businesses already invested in the Microsoft ecosystem, Azure Backup offers the advantage of deep integration. It is configured and managed through the same Azure Portal used for your other cloud resources, uses the same identity and access management (Azure Active Directory), and benefits from the same billing relationship. There is no separate vendor to manage, no additional contract to negotiate, and no integration work required to connect it to your existing Azure infrastructure.
Key Features of Azure Backup
Azure Backup provides application-consistent snapshots that ensure databases and applications are backed up in a consistent state, eliminating the risk of corrupt restores. It supports configurable retention policies from daily to yearly, with the ability to retain backups for up to 99 years for compliance purposes. Data is encrypted both in transit and at rest using Microsoft-managed keys or your own customer-managed keys stored in Azure Key Vault.
The service supports geo-redundant storage, meaning your backups can be replicated to a secondary Azure region automatically. This protects against regional outages — if the primary Azure data centre experiences a catastrophic failure, your backups remain accessible from the secondary region. For UK businesses, this typically means backups stored in UK South with replication to UK West, keeping data within UK borders.
Understanding Third-Party Backup
Third-party backup solutions such as Veeam, Acronis, Datto, Druva, and Commvault offer backup services that work across multiple platforms and cloud providers. These solutions can typically back up Azure workloads, Microsoft 365 data, AWS resources, Google Workspace, on-premises servers, and endpoints — all from a single management console.
The primary advantage of third-party solutions is platform independence. If your business uses a hybrid infrastructure spanning Azure, AWS, and on-premises servers, a third-party solution provides a single pane of glass for managing backups across all environments. They also frequently offer features that Azure Backup lacks, particularly around Microsoft 365 backup.
Feature-by-Feature Comparison
| Capability | Azure Backup | Third-Party (e.g., Veeam) |
|---|---|---|
| Azure VM Backup | Excellent — native integration | Good — agent or agentless options |
| Microsoft 365 Backup | Limited — Microsoft 365 Backup still evolving | Comprehensive — Exchange, SharePoint, OneDrive, Teams |
| Multi-cloud Support | Azure only | Azure, AWS, GCP, on-premises |
| Granular Restore | VM-level, file-level, SQL database | VM, file, email, SharePoint item, Teams message |
| Ransomware Protection | Soft delete, immutable vaults | Air-gapped copies, immutability, anomaly detection |
| Pricing Model | Pay-as-you-go based on storage consumed | Per-user or per-VM licensing plus storage |
| Management Console | Azure Portal | Dedicated backup management console |
| UK Data Residency | UK South and UK West regions available | Varies — verify data centre locations |
The Microsoft 365 Backup Gap
One of the most important considerations for UK businesses is Microsoft 365 backup. Microsoft's own terms of service make clear that they provide infrastructure-level resilience but do not protect against user-level data loss. If an employee accidentally deletes a critical email, a malicious insider wipes a SharePoint library, or ransomware encrypts your OneDrive files, Microsoft's built-in protections have significant limitations.
Azure Backup's native Microsoft 365 backup capabilities have been expanding but remain less mature than established third-party solutions. Veeam Backup for Microsoft 365, for example, provides comprehensive backup of Exchange Online, SharePoint Online, OneDrive for Business, and Microsoft Teams — with granular restore capabilities that allow you to recover individual emails, files, or even Teams conversations.
Microsoft is responsible for the availability of the Microsoft 365 service — their infrastructure, data centres, and network. You are responsible for your data — protection against accidental deletion, malicious insiders, ransomware, and retention beyond Microsoft's native policies. This shared responsibility model means that relying solely on Microsoft's built-in protections leaves significant gaps in your data protection strategy.
Cost Comparison
Pricing for backup solutions can be complex, and direct comparison requires understanding the different pricing models.
Azure Backup uses a consumption-based model. You pay for the number of protected instances (VMs, databases, etc.) plus the storage consumed by your backups. For a typical UK SME with 5 Azure VMs and 2TB of backup data, monthly costs might range from £150 to £400 depending on retention policies and storage redundancy options.
Third-party solutions typically charge per user, per VM, or per TB of protected data, plus storage costs (which may be included or separate). Veeam Backup for Microsoft 365, for example, costs approximately £2-4 per user per month. A comprehensive Veeam solution covering Azure VMs and Microsoft 365 for a 50-user business might cost £300-600 per month.
Which Should You Choose?
The decision depends on your specific circumstances. Here is a framework for making the choice.
Choose Azure Backup When
- Your workloads are primarily or exclusively on Azure
- You value simplicity and native integration
- You have a separate solution for Microsoft 365 backup
- You prefer consumption-based pricing with no upfront commitment
- UK data residency within Azure regions meets your compliance needs
Choose Third-Party Backup When
- You need to back up across multiple platforms (Azure, AWS, on-prem)
- Microsoft 365 backup is a critical requirement
- You need advanced ransomware protection with air-gapped copies
- Granular restore of individual emails, files, or Teams messages is essential
- You want a single management console for all backup operations
The Hybrid Approach
Many UK businesses find that the best answer is not one or the other, but both. Azure Backup for Azure-native workloads — VMs, SQL databases, Azure Files — combined with a specialist third-party solution for Microsoft 365 backup and any non-Azure workloads. This hybrid approach leverages the strengths of each platform while eliminating the gaps.
Whichever approach you choose, the most important thing is that your backups are tested regularly. A backup you have never tested is a backup you cannot trust. Schedule regular restore tests — at minimum quarterly — to verify that your data can actually be recovered when you need it. The worst time to discover your backups do not work is during a genuine disaster.
Need Help Choosing the Right Backup Strategy?
Cloudswitched designs and manages backup solutions for UK businesses using Azure and Microsoft 365. We will assess your requirements, recommend the right approach, and ensure your data is protected and recoverable.
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CloudSwitched
Centrally located in London, Shoreditch, we offer a range of IT services and solutions to small/medium sized companies.