Hi Nilesh,
1. What happens to the data in Marketing App? Does it stay as it is and can it be leveraged again if they decided to add back Marketing?
If the Marketing license is uninstalled, any data not stored in CDS will be lost including interaction data, which is stored in Azure Blob storage, and asset data (images, videos, etc) which are not stored in CDS. Any data in CDS stays in CDS so long as there is some Dynamics or Power Apps license sponsoring the CDS storage space.
2. Is there a way to backup Marketing Data?
You don't need to backup anything in CDS if you maintain some Dynamics or Power Apps license which sponsors CDS storage. There is no easy way to backup asset data, you can file a support ticket to have help copying it to a separate location on your tenant or you need to use provided APIs from Dynamics 365 Commerce to retrieve and reingest/recreate the asset objects. For interaction data, you can download it to your own Azure Blob storage nam06.safelinks.protection.outlook.com/
3. Is there anything else we should consider BEFORE removing the D365 Marketing Licenses?
The services associated with Marketing will be stopped after a certain amount of time once the license is uninstalled. That is when the interaction data and CMS asset data will be lost.
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