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What if there is a problem with the system (service level agreements, disaster recovery)?

As with other services of this type, there is no Service Level Agreement with Microsoft and no provision for Disaster Recovery in the event of the service being unavailable. However many Universities and higher educational institutions are using Office 365 and as a highly visible service, there is an incentive for Microsoft to ensure Office 365 is always available.

To date there have been no significant outages.