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Contrary to popular belief, Microsoft does in fact back up Office 365 data. You can dig in and find more details about the resiliency, recovery and other protections of data on Microsoft docs:
You can use Office 365 offline (without internet access) if you download and install the desktop version of Office with your plan. You have to connect to the internet every 30 days to maintain your subscription and Office 365 tells you when it's time to connect.