"Proxy offline time exceeded” error after updating Veeam Backup for Microsoft Office 365 to version 4c

Challenge

After updating Veeam Backup for Microsoft Office 365 4c (build 4.0.1.531) backups start to fail with the “Proxy offline time exceeded”.

Cause

At the end of every month, Veeam Backup for Microsoft Office 365 collects licensing information. If your Veeam Backup for Microsoft Office 365 server is installed on a server with a time zone east of GMT (GMT +1, GMT +2, and so on) a duplicate record is mistakenly created. Because of this record, the synchronization between proxies and the controller fails and after 48 hours all remote proxies stop working.

Solution

Contact Veeam support to obtain a hotfix if you are experiencing this issue.