Ask a Singapore SME how it backs up and you often hear “it's all in Microsoft 365” or “we have a Synology NAS.” Both feel safe. Neither, on its own, is a complete backup – and the gap only shows up on the worst day. This Synology vs M365 backup and cloud-backup comparison weighs all three honestly, with real Singapore costs, so you can build protection that actually holds.
The dangerous assumption: “we're already backed up”
Microsoft 365 (and Google Workspace) run on a shared responsibility model: they keep the service available, but protecting your data is your job. Their recycle bin and retention are short-term safety nets, not backups – deleted mail, files and SharePoint sites age out, and a compromised or deleted account can wipe data that retention will not bring back. If your only “backup” is the platform itself, you are exposed.
The three options, explained
Microsoft 365 built-in retention
The recycle bin, version history and retention policies inside M365. Useful for an “oops, deleted yesterday” moment, but time-limited and not designed for full recovery after a serious incident. It does not protect against a wiped or compromised account.
Synology NAS (on-site)
A network storage device in your office that stores and can back up your files and even your M365 data locally. It is fast and gives you control – but a NAS alone is a single copy in a single location, vulnerable to fire, theft, flood and ransomware that spreads across the network to it. Great as one layer, dangerous as the only one.
Dedicated cloud backup (offsite)
A managed backup service that keeps encrypted copies of your data – including Microsoft 365 mailboxes and SharePoint – offsite in the cloud, with point-in-time recovery. This is the offsite layer that survives anything happening at your office.
Head-to-head comparison
| Factor | M365 built-in | Synology NAS | Cloud backup |
|---|---|---|---|
| Is it a real backup? | No (retention only) | Partly (single copy) | Yes |
| Offsite / disaster-safe | N/A | No | Yes |
| Survives ransomware | Limited | Only if isolated | Yes (immutable copies) |
| Restore speed | Slow / limited | Fast (local) | Depends on data size |
| Backs up M365 data | No | Yes (with app) | Yes |
| Cost model | Included | Upfront hardware | Monthly subscription |
What they cost in Singapore
The two paid layers have very different cost shapes, which is why the best answer often uses both:
- Synology NAS: a business-grade unit such as a Synology DS920+ with around 8TB costs roughly S$1,200-S$1,500 upfront, plus about S$100-S$150/year in electricity. It is a capital cost that typically serves 3-5 years before you expand.
- Cloud backup: an operating cost, often S$10-S$30/month for smaller data sets, scaling with volume – a growing SME with a couple of TB might pay S$100-S$200/month.
- The trade-off: the NAS is cheaper over years for large local data; cloud backup is cheaper to start and needs no hardware. Together they are still far cheaper than one serious data-loss event.
Synology and NAS in Singapore
Synology is one of the most popular NAS brands for Singapore offices, with QNAP the usual alternative – both are solid; the choice comes down to the app ecosystem and support you prefer. A NAS in Singapore is an excellent local recovery layer: restore speeds of 100-200 MB/second over your own network mean a deleted folder is back in minutes, not hours. The mistake is treating that local speed as if it were also offsite safety. It is not.
The right answer: combine them (3-2-1)
The industry standard is the 3-2-1 rule: three copies of your data, on two types of media, with one copy offsite. That maps almost perfectly onto these tools:
- Working copy – your live files in Microsoft 365 and on devices.
- Local backup – a Synology NAS for fast, same-day restores.
- Offsite backup – cloud backup that survives fire, theft and ransomware, and also protects your M365 mailboxes and SharePoint.
- Tested restores – whichever you use, test a full restore quarterly, or it is a guess, not a backup.
Backing up Microsoft 365 the right way
Because so many SMEs live in Microsoft 365, the single most overlooked backup is M365 itself. A dedicated M365 backup captures your Exchange mailboxes, OneDrive, SharePoint and Teams data on a schedule, keeps it recoverable point-in-time, and stores it outside Microsoft's tenant. You can send those copies to a Synology NAS on site, to the cloud, or both – which is exactly how the 3-2-1 rule applies to email and documents, not just files on a server.
- Mailboxes and calendars – recover a deleted or compromised mailbox in full, long after the recycle bin has emptied.
- SharePoint and OneDrive – roll back a ransomware-hit or over-shared library to a clean point in time.
- Teams – preserve channels and files that native retention does not fully protect.
Who should pick what
- Small office, data mostly in M365: start with dedicated Microsoft 365 cloud backup; add a NAS as you grow.
- Lots of large local files (design, video, CAD): a Synology NAS for fast local access and backup, plus cloud for the offsite copy.
- Any business that cannot afford downtime: run both layers and test a full restore quarterly.
Frequently asked questions
Does Microsoft 365 back up my data?
No, not in the way people assume. Microsoft 365 runs on a shared responsibility model: Microsoft keeps the service running, but protecting your data is your responsibility. Its recycle bin and retention are short-term and time-limited – deleted or compromised data can age out or be lost permanently. For real protection you need a separate backup of your M365 mailboxes, files and SharePoint.
Is a Synology NAS a backup by itself?
Not a complete one. A NAS is an excellent on-site layer that gives fast local restores, but on its own it is a single copy in a single location – vulnerable to fire, theft, flood and ransomware that can spread to it over the network. It becomes real backup only when paired with an offsite or cloud copy, which is the third part of the 3-2-1 rule.
Synology NAS or cloud backup – which is better for an SME?
Neither alone; they complement each other. A Synology NAS gives fast, same-day local recovery, while cloud backup gives offsite protection that survives anything happening at your office. The strongest and most cost-effective setup for most SMEs uses both – NAS for speed, cloud for disaster recovery – together forming a proper 3-2-1 strategy.
How much does a Synology NAS cost in Singapore?
A business-grade Synology unit with around 8TB of storage typically costs S$1,200-S$1,500 upfront, plus roughly S$100-S$150 a year in electricity. It is a capital cost that usually serves an SME for 3-5 years before expansion. Cloud backup, by contrast, is a monthly cost that starts small and scales with your data.
Do I still need backup if I use both a NAS and Microsoft 365?
Yes – if the NAS is your only backup, you are missing the offsite layer. A NAS plus M365 still leaves everything in one physical location and one cloud tenant. Adding offsite cloud backup (that also protects your M365 data) completes the 3-2-1 rule, so a fire, theft, ransomware event or account compromise cannot take out all your copies at once.
What is the 3-2-1 backup rule?
It is the standard for reliable backup: keep three copies of your data, on two different types of media, with one copy stored offsite. In practice that is your live data, a local backup such as a Synology NAS, and an offsite cloud backup. The offsite copy is what saves you when something physical or ransomware-related hits your office.
About the author
Written by the Rezolva IT team – we design backup for Singapore SMEs using on-site NAS and offsite cloud together, including dedicated Microsoft 365 backup. This guide reflects the real gaps we find on assessments: businesses that believe they are backed up because they have M365 or a NAS, when in fact they have only one layer.