Office 365 User Guide
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Security, transparency, compliance, and privacy

In addition, Office 365 is security-hardened and compliant with a plethora of government and industry standards in the US and abroad. Your data is your data and it says private to you and your organization, and your organization has the ability to see where the data is and who has access to it. There are more measures and capabilities than what I have outlined here. You can read all of the details on Microsoft's privacy, compliance, security, and transparency measures via the Microsoft Trust Center: http://trustoffice365.com