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Best Office 365 backup for 170 person company?

We want to ditch our on-premise Exchange 2007 for Office 365.  

I'm just now reading up on the various plans, but I have the impression that backup/restore of user mailboxes is not included.

I have the impression that although Microsoft has disaster recovery, it's for them, not for us.  

I believe there are 3rd party solutions, but I was curious what's most common/appropriate for a company of our size?

Perhaps we are spoiled: we have AppAssure's Replay so we can restore files & mailboxes from hourly incremental backups.

Thanks for steering me in the right direction,
Mike
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Thanks h1r0 ; I'm looking at the E-plans right now.  

We're really not concerned about unlimited sized mailboxes.  Rather, we're interested in being able to restore a mailbox to the way it was yesterday or last week.

I can't wait to see what type of options exist within MS, without resorting to 3rd party solutions.

I'm also curious about what techniques are available should a smartphone user do a bad sync to contacts and scramble them.  I'd love to simply get everything back the way it was yesterday.  This scenario isn't "delete's per say", but bad edits/overwrites.

Thanks for the tip,
Mike
Thank you everyone!  I'm  comparing the exchange only level 2 vs. E3 right now to see if that will work.  We really don't have a desire to replicate all the mailboxes onto our servers.  We really were just interested in recovering to various points in time.  So much to investigate, but really cool options!  Thanks!