M365 is not a backup space. It is for live document storage/collaboration. Yes, your users would need to be independently licensed. I would suggest you leverage Azure Blob Storage as your backup location, instead. This is what many of the 3rd party backup solutions on the market do today for on-prem and M365 workloads.
Backup to O365 Cloud Space
Hi,
I have a application that does backups of user's data. Now I have added capability to copy onto O365 Cloud Space using MS Graph API. Data is compressed and uploaded. My customers will purchasing their own O365 licenses. Will I need to take any permissions ? Can it be done for Desktop and Server OS as well ?
Regards
Allan
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Baker Kong-MSFT 3,801 Reputation points
2020-08-04T02:07:14.643+00:00 Hi AllanFernandes-2221,
MS Graph API supports multi-tenancy, the application will take action on the behalf of the customer as it gets consent and authorized. You won't need to request any privilege from your customer. And MS Graph is rest API, it does not rely on any platform. You can join the Microsoft 365 Developer Program to get started, it will offer you a tenant with some license for testing.
Best Regards,
Baker Kong