SaaS platforms like Microsoft 365 and Google Workspace have become the go-to tools of SMBs for managing critical operations like email, file storage, and collaboration.
While these platforms typically have built-in data retention features, they rarely meet the unique legal and regulatory requirements organizations must comply with.
That is why SMBs must have well-defined SaaS data retention policies aligned with their compliance obligations.
Without one, they risk permanent data loss, higher SaaS costs, or worse, compliance penalties for not meeting regulatory standards.
This guide shows you how to help your SMB clients build clear SaaS data retention policies. Keep reading to learn more about what should be included in an effective data retention policy.
How to develop compliant SaaS retention policies
To create a well-defined and compliant SaaS data retention policy, you’ll need the following:
📌Prerequisites
- List of SaaS platforms in use (for example, Microsoft 365, Google Workspace, Slack, Salesforce, Dropbox)
- Knowledge of regulatory frameworks applicable to the client, such as HIPAA, PCI, DSS, GDPR, and CCPA
- Defined Recovery Point Objective (RPO) and Recovery Time Objective (RTO)
- Access to native SaaS admin consoles and/or third-party backup tools
- Documentation system (SharePoint, IT Glue, or NinjaOne Documentation) for recording and reviewing policies
Step 1: Identify business and compliance requirements
Start by mapping out which industry regulations apply to your data categories. For example, organizations that handle healthcare data must follow HIPAA, while those that work with EU customer data must comply with GDPR.
Talk to your SMB client’s leadership to align retention goals with business needs, such as a 7-year preservation period for financial records.
You also need to check your contracts for specific data retention clauses to ensure you won’t overlook any legal obligations.
Deliverable: A checklist of compliance and business requirements
Step 2: Audit your current SaaS platform’s retention capabilities
Next, review the default retention settings of your SaaS applications. Compare these features and look for any coverage gaps. This step makes identifying where your current setup falls short easier.
To make the process easier, use automation to export current retention configurations:
(A) Exporting retention settings from Google Workspace for audit
gcloud vault matters list --query="name:RetentionPolicy"
(B) Exporting mailbox retention policies from Microsoft 365
Get-RetentionCompliancePolicy | Export-Csv "M365_RetentionPolicies.csv" -NoTypeInformation
These exports will help you validate whether your current data retention setup aligns with your regulatory requirements.
Deliverable: SaaS retention capability matrix
Step 3: Define retention timelines by data category
Create tiered retention policies based on data type and business:
- Short-term (30-90 days): Deleted items recovery
- Medium-term (1-3 years): Operational and collaboration data
- Long-term (7+ years): Financial, HR, and compliance-critical records
Deliverable: A standardized retention schedule approved by the SMB leadership team
Step 4: Implement and automate retention policies
With a formalized retention schedule, configure your retention policies using native SaaS features like Microsoft 365’s retention labels or Google Vault rules. If there are gaps, consider using third-party backup tools like NinjaOne Backup.
Automate your SaaS backup process wherever possible to reduce the risk of manual errors and prevent drifting away from your policies.
Deliverable: A well-documented implementation plan with audit logs turned on
Step 5: Review, test, and update your data retention policies regularly
Finally, you must conduct quarterly recovery tests to ensure your policies comply with your client’s RPO and RTO targets.
Schedule annual reviews to adjust your retention policies to changing regulatory or business requirements. Ensure you maintain thorough documentation of all tests and reviews conducted for audit readiness.
Deliverable: Retention audit logs stored in NinjaOne Documentation or similar documentation systems
Process summary
| Component | Purpose and Value | Deliverable |
| Requirements checklist | Ensures alignment with compliance and business needs | Compliance and business requirements checklist |
| Retention capability matrix | Identifies gaps between needs and SaaS default retention settings | SaaS retention capability matrix |
| Standardize schedule | Provides clarity and consistency across data types | Standardized retention schedule |
| Automated enforcement | Reduces human error and ensures reliability | Documentation implementation plan with enabled audit logs |
| Regular review/testing | Maintains compliance and audit readiness | Retention audit logs |
What’s the purpose of an SaaS data retention policy?
A clear SaaS data retention policy allows SMBs to:
- Align their retention policies with regulatory and contractual obligations: A well-defined SaaS data retention policy ensures SMBs comply with data privacy regulations and client SLAs.
- Provides clarity during audits and legal reviews: Creating a SaaS data retention policy keeps SMBs audit-ready. It allows them to quickly demonstrate how they manage their data, where they store it, and how long they preserve it.
- Reduces storage costs while maintaining recovery readiness: Storing data indefinitely can quickly become expensive, especially as SMBs continue to scale and accumulate more data. Establishing retention timelines will help them balance cost-efficiency with operational needs by determining when to delete or archive data.
- Demonstrates proactive IT governance to clients: Implementing a retention policy shows that an organization proactively protects its clients’ sensitive information and adheres to industry standards.
What should a SaaS data retention policy include?
A well-written data retention policy outlines how an organization handles data from creation to deletion. It should include:
- Purpose and Scope: The why of the policy and the data category it covers
- Data Categories: The different types of data the organization collects and stores
- Retention Periods: The specific retention periods for each data type collected
- Deletion and Disposal Procedures: The process of securely deleting or disposing of data once the retention period is over
- Roles and Responsibilities: Identifies who’s in charge of enforcing the policy
- Legal and Regulatory Compliance: The laws or regulations the policy must comply with
- Storage and Access Controls: Details where data is stored, how it’s secured, and who can access or manage it
- Backup Procedures: Outlines backup frequency, storage location, and retention for different data categories
How NinjaOne can help you enforce SaaS data retention policies
NinjaOne simplifies SaaS data retention policy enforcement by:
- Hosting and version-controlling retention documentations in NinjaOne Documentation
- Automating reminders for quarterly recoverability testing
- Tracking compliance-related tickets or tasks tied to retention reviews
- Integrating retention checkpoints into QBRs to demonstrate governance to SMB clients
Building strong client relationships through well-defined SaaS data retention policies
A SaaS data retention policy can be a game-changer for SMBs. It removes the guesswork from data management and replaces it with clarity.
By helping your SMB clients align their retention practices to industry requirements and the built-in capabilities of their SaaS tools, you can strengthen client trust and build stronger relationships.
Related topics:
