Having worked in the Information Technology industry for nearly twenty years in areas of senior management in Enterprise and as a consultant I have seen this in action many times to the detriment of the businesses that carries it out.
There are basically two types of backups that can be done for desktops and servers, Data backups and Image based backups. Only Imaged based backups are viable for recovering computer and server systems in case of a disaster.
Office 365 is Microsoft's cloud based productivity suite that comprises the latest versions of Office including Word, Excel, Outlook, PowerPoint, to name a few. In fact the Office 365 productivity suite is a changing animal and applications are added occasionally for customers to utilise.