Object Storage with Veeam Backup Office 365

Yes, Veeam Backup for Microsoft 365 can use object storage (like Amazon S3, Azure Blob, or S3-compatible services) as a target for backups, but with important limitations. You can store backup repositories on object storage, but only for long-term retention or archival copies—not for active backup jobs directly. This article explains how object storage fits into Veeam’s Office 365 backup architecture, what you need to know about performance and costs, and how to set it up correctly.

Background: Why Object Storage for Office 365 Backups?

Office 365 (now Microsoft 365) data—Exchange mailboxes, SharePoint sites, OneDrive files, and Teams—is stored in Microsoft’s cloud, but Microsoft does not provide a full backup solution. Veeam Backup for Microsoft 365 fills that gap by copying data to your own storage. Traditional backup targets are on-premises NAS or servers, but many organizations want to keep backups in the cloud for off-site protection or to avoid managing hardware. Object storage offers virtually unlimited capacity, pay-as-you-go pricing, and high durability, making it attractive for long-term retention of large datasets.

However, object storage is not a drop-in replacement for a regular backup repository. It has different performance characteristics and API limitations, which Veeam handles by using it only for specific backup modes.

How Veeam Backup for Microsoft 365 Uses Object Storage

Veeam Backup for Microsoft 365 (formerly Veeam Backup for Office 365) supports object storage as a backup repository for the following purposes:

• Archive tier: You can configure a backup repository on object storage to store long-term backups that you don’t need to access frequently. Veeam moves older restore points to this archive tier automatically based on your retention policy.
• Copy jobs: You can create backup copy jobs that copy backups from a primary (on-premises) repository to an object storage repository, providing off-site protection.
• Direct backup to object storage: In recent versions, Veeam allows you to create a backup job that writes directly to an object storage repository. However, this is only supported for immutable backups (see below) and is not recommended for primary backups due to performance.

Important: Veeam does not support using object storage as the primary repository for regular backup jobs that run frequently. The reason is that object storage has high latency for small writes and is not designed for high-frequency I/O. Instead, you should back up to local or network storage first, then copy or archive to object storage.

Requirements and Compatibility

Veeam Backup for Microsoft 365 supports a range of object storage providers:

• AWS S3 (including S3 Glacier for archive)
• Azure Blob Storage (including cool and archive tiers)
• Google Cloud Storage (standard and coldline)
• S3-compatible services like Wasabi, Backblaze B2, and many others

To use object storage, you need to create a new backup repository in Veeam and select “Object storage” as the type. You’ll need to provide the access key, secret key, and endpoint URL. For S3-compatible services, you may also need to specify the region and bucket name.

One key requirement is that object storage must support immutability (object lock) to protect backups from ransomware. Veeam can enable immutability on the object storage repository, which prevents any deletion or modification of backup files for a specified period. This is a major advantage over on-premises storage, which can be compromised.

How to Set Up Object Storage in Veeam Backup for Microsoft 365

Setting up object storage is straightforward:

1. Open the Veeam Backup for Microsoft 365 console and go to Backup Infrastructure > Backup Repositories.
2. Click Add Repository and choose Object storage.
3. Select your provider (Amazon S3, Azure Blob, S3-compatible) and enter the connection details (endpoint, bucket, access key, secret key).
4. Configure the folder path and optionally enable immutability with a desired period (e.g., 30 days).
5. Set up a backup copy job or archive job that targets this repository.

For archive jobs, you can define a retention policy that moves restore points older than X days to object storage. For copy jobs, you can specify the object storage repository as the target.

Note: If you are using AWS S3 Glacier for archive, you need to set up a lifecycle policy on the bucket to transition objects to Glacier after a certain time.

Performance and Cost Considerations

Object storage is slower than local disks for backup and restore operations. Restoring from object storage can take longer, especially for large mailboxes or SharePoint sites. Veeam mitigates this by using a cache on a local disk when restoring from object storage, but the initial download still depends on your internet bandwidth.

Costs are typically based on storage capacity and data transfer. While storage is cheap, egress (data transfer out) can be expensive, especially with AWS. To minimize costs, use archive tiers for cold data and consider providers like Wasabi that offer no egress fees.

Another consideration: object storage is billed per GB per month, so storing many restore points can add up. Use retention policies to keep only necessary copies.

Common Problems and Misconceptions

A frequent misconception is that you can use object storage as a primary backup target for fast, frequent backups. As mentioned, Veeam does not support this due to performance. Another issue is that not all S3-compatible services support all features Veeam needs, such as object lock or versioning. Always check Veeam’s compatibility list before choosing a provider.

Another problem is that backups stored in object storage are not immediately available for restore. Veeam needs to download the data to a local cache, which can take time. If you need fast restores, keep a local copy as well.

Finally, some users forget to enable immutability on the object storage bucket itself (in addition to Veeam’s setting). Without bucket-level object lock, a compromised account could delete backups.

Alternatives to Object Storage

If object storage doesn’t fit your needs, consider these alternatives:

• On-premises storage: A NAS or server with local disks. Fast and simple, but requires hardware and is not off-site.
• Cloud storage with native Veeam support: Veeam also supports Azure Blob and S3 as primary repositories for Veeam Backup & Replication (for VMs), but for Microsoft 365, object storage is only for archive/copy.
• Third-party cloud backup services: Services like Spanning or CloudAlly offer direct Office 365 backup with their own storage, but you lose control over where data is stored.

Choose object storage if you need long-term retention, off-site protection, or immutability. Choose on-premises if you need fast restores and have the hardware.

Frequently Asked Questions

Can I back up Office 365 directly to object storage with Veeam?

Yes, but only for archive or copy jobs. Veeam does not support direct backup to object storage for regular backup jobs due to performance. You should back up to local storage first, then copy or archive to object storage.

Does Veeam support S3-compatible storage for Office 365 backups?

Yes, Veeam supports S3-compatible services like Wasabi, Backblaze B2, and others. You need to provide the endpoint URL, access key, and secret key. Ensure the provider supports object lock if you want immutability.

How does immutability work with object storage in Veeam?

Veeam can enable immutability on the object storage repository, which prevents backup files from being modified or deleted for a specified period. This protects against ransomware and accidental deletions. The object storage provider must support object lock.

What is the cost of using object storage for Veeam backups?

Costs vary by provider. You pay for storage (per GB per month) and data transfer (egress). Some providers offer free egress, which can reduce costs. Use archive tiers for old backups to lower storage costs.

Can I restore from object storage quickly?

Restores from object storage are slower than from local storage because Veeam downloads data to a local cache first. For large items, this can take hours. If you need fast restores, keep a local copy.

Is object storage safe for backups?

Yes, if you enable immutability and use encryption. Veeam encrypts backups by default, and object storage providers offer encryption at rest. Immutability ensures backups cannot be altered or deleted, making them safe from ransomware.

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