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Veeam is happy to provide a free NFR license (for 1 year, up to 10 users). This license allows for the non‑production use of Veeam Backup for Microsoft Office 365 in your home lab without any feature limitations.
This technical paper will help you implement VMware’s VM encryption as well as implement Veeam encryption which together will achieve the nothing ever in the clear goal. If a bad guy steals VMs, backups or traffic they get nothing.