Veeam Backup for Microsoft Office 365 can run on physical or virtual servers. As the software can run within virtual servers you can deploy Veeam Backup for Microsoft Office 365 on your own virtualization platform, within a private cloud or at the platform of a (hyperscale) cloud provider like Microsoft Azure and Amazon AWS. For deployment within Microsoft Azure a template is available in the Azure Marketplace.
Making the selection for the final location for running Veeam Backup for Microsoft Office 365 is a business decision instead of a technical choice. There are multiple important reasons for creating a backup of your Office 365 data. Multiple Veeam Backup for Microsoft Office 365 customers decide to store their data “at home” within their local infrastructure to ensure they will have a copy of their own data. Other customers run it within Microsoft Azure based on the Veeam Backup for Microsoft Office 365 template available within the Azure Marketplace.