The hard drives from offices in the capitol have been taken by citizens. ?
(mobile.twitter.com)
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Depends on whether they are using a client-side email program like Outlook. Those ARE stored on the HDD.
If they use only Outlook Web Access, or Gmail via the web, or some other non-client app, then you are correct.
That photo from Pelosi's office does show Outlook on their desktop though.
Outlook under Office 365 still uses local files for offline access. These are the old .pst files for POP accounts, and the new .ost files for IMAP and everything else.
MOST of the Gov doesn't use 365.