Microsoft is changing how the removal of an Office 365 retention policy affects the data held in the SharePoint Online Preservation Hold Library. Instead of an immediate purge, data will be kept for a period to allow administrators to recover it. Sounds like a good idea and it should help people rescue a situation when someone removes a retention policy in error. That is, if they notice that the policy is no longer in effect for a site.
If you’re interested in deploying backups for SharePoint Online, you might be doing so to prevent data loss through accidental user deletion. However, Office 365 retention labels and policies can help prevent accidental deletion too. And the best thing is that retention policies and labels are part of Office 365 E3, so you don’t have to pay more to get protection.