Datto SaaS Protection - Backup performance degradation for M365 services affecting multiple pods/regions

Update timeline

1. identified Aug 05, 2026, 07:40 PM UTC

   Datto SaaS Protection is currently experiencing degraded backup performance and missed backups for some Microsoft 365 services across multiple regions. The issue has been linked to increased API activity and application-level throttling associated with the ongoing transition from Exchange Web Services (EWS) to Microsoft Graph APIs. Affected regions: US (USE/USW) Australia (AUE) Canada (CAE) Germany (DES) UK (GBE) Singapore (SG) Our R&D teams have identified the primary contributing factors and are actively working to restore full service functionality. Multiple mitigation measures have been implemented, including application performance optimizations, infrastructure and capacity improvements, deployment of configuration changes across affected SaaS Protection pods, and a temporary reduction in backup cadence from 3x daily backups to 2x daily backups to help reduce API demand and improve backup success rates during the transition. These actions have resulted in measurable improvement, with backup success rates increasing across all affected regions over the past 24 hours. While performance continues to stabilize, some customers may still experience backup delays or missed backups as remediation efforts continue. Additional software enhancements are scheduled for deployment this week to further reduce API throttling, improve backup performance, and accelerate recovery. Customer data protection remains the highest priority, and our R&D teams continue to closely monitor the environment while implementing further improvements. Updates will continue to be provided through the Kaseya Status Page as progress is made toward full service restoration.