Organizations rely on being able to access and restore data to continue normal operations. Losing critical company, customer, financial, or intellectual property data can rapidly put you out of business.
However, outages, cyber incidents, natural disasters, and simple human errors happen frequently. One study found 93% of companies experienced a data loss event over the prior 12 months.
So making the right data backup decisions is an essential yet often confusing part of every IT administrator or business owner‘s responsibilities.
This definitive guide will demystify key considerations around "cloud backup versus local onsite backup" solutions to help you determine what works best given your specific technical environment, business needs, and budget constraints.
What is Data Backup?
Data backups represent additional copies of original files stored in a different location for safe keeping. If something happens to damage or delete key company information, systems administrators restore data from backups.
This prevents permanent loss ensuring the business can resume normal functions quickly with minimal financial impact.
There are two primary approaches to copying and maintaining backups:
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Cloud Backup – Data gets transmitted and stored offsite using a service provider‘s remote cloud-based servers.
-
Local Backup – Data gets copied to a separate storage device directly attached to the original onsite computer or server.
Now let‘s explore the pros and cons around each method.
Cloud Data Backup Overview
With cloud backup services, your files get sent through the internet to data centers operated by companies like Acronis, Carbonite, Datto, IDrive, and Backblaze where they remain available for restoration.
It works very similarly to how employees remotely access hosted business software using a web browser. Except here the vendor is focused specifically on storing your backups versus running applications.
As Gartner Vice President Santhosh Rao observes:
“Cloud delivers operational simplicity, subscription economics and immediate availability of new capabilities without the capital expense of setup and management.”
Let‘s analyze key benefits and drawbacks to cloud backup for securing your company‘s data.
Advantages of Cloud Backup
Cost Savings
Using a cloud backup service minimizes upfront expenditures associated with purchasing backup software licenses and data storage hardware. Instead, you pay affordable monthly subscription fees based on your actual usage.
It converts large fixed capital costs into smaller operating costs that flex up and down as needs evolve. There are no long term commitments. You only pay for capacity required each month.
Cloud backup represents an operating expense rather than substantial capital investments depreciated over 5+ years. This difference has huge cash flow ramifications allowing companies to redirect funds to other more strategic initiatives.
As sensitivities around economies of scale, Datto CTO Robert Gibbons revealed to CIO their cloud backup solution pricing:
“Datto said it cuts backup storage costs by at least half for its channel partners compared to what they’d pay for their own on-premises backup solution”
Built-in Disaster Recovery
Natural disasters like fires, floods, tornadoes or hurricanes often damage computer systems and backup devices located onsite. Cloud backups remain completely isolated from any local incidents. This provides companies geographic diversity key for disaster recovery and business continuity.
Greater Reliability
Reputable cloud backup providers implement data redundancy across multiple data centers to guarantee uptime and availability. They also utilize higher quality equipment, proper testing protocols, access controls, cybersecurity and physical security exceeding what typical organizations could develop internally.
As Backblaze CEO Gleb Budman commented:
“All hard drives will eventually fail. If you have important data, you’ll likely want a second copy at another location in case of theft, fire, flood, etc. Offsite backup is one of the main reasons businesses and individuals choose cloud backup”
Simple Scalability
You easily adjust allocated capacity and features as data retention needs change. Adding new servers or external drives can be complex and disruptive. Cloud services readily support business growth and fluctuating storage requirements.
Faster Deployment
Implementing onsite backup solutions requires extensive planning, equipment procurement, installation, testing and documentation. Cloud-based backup setup only takes minutes since all infrastructure sits offsite. Your team avoids configuration headaches allowing them to focus on driving innovation through other projects.
Disadvantages of Cloud Backup
While advantages clearly make cloud backup tempting, businesses must also seriously consider a few drawbacks:
Reliance on Internet Connectivity
Data transmission slows considerably due to bandwidth constraints. And backup/restoration stalls entirely during internet outages. For companies with unreliable connectivity, this could become problematic.
As much as 73% of unexpected company downtime gets attributed to network issues according to research by Zesty.
Limited Control
You rely completely on a third-party vendor to securely handle and protect sensitive company data. Must trust provider firewalls, encryption and cybersecurity measures.
Added Latency
The physical distance data needs to traverse back and forth from onsite systems to cloud servers leads to lags. This gets exacerbated by bandwidth limitations.
Storage Retrieval Fees
While backing up data is unlimited based on monthly service plans, some providers charge fees when restoring or downloading large amounts of data for disaster recovery scenarios.
Privacy & Sovereignty Concerns
Understand legal jurisdictions and physical data center locations to ensure compliance with any customer or government mandated geographic restrictions on where data gets stored and processed.
Local Data Backup Overview
Local data backup refers to copying important company files and databases to a separate storage device directly attached to the associated server or computer onsite via a USB, SCSI, Fibre Channel or SATA connection.
Common equipment used includes:
- External hard drives
- High capacity SSDs
- RAID drive arrays
- Removable disks
- Magnetic tapes
Management software automates the backup process including compression, encryption, file version histories and optimizing restoration.
This represents a fully in-house, air-gapped solution without reliance on any external vendor services.
Advantages of Local Backup
There are some compelling factors around keeping data backup completely onsite:
Faster Performance
Without bandwidth or latency bottlenecks, local backup happens astonishingly quick. And restores complete instantly since the storage device connects directly to servers. This is extremely important when timing is critical after data loss or destruction incidents.
Continuous Availability
Local backup remains continuously accessible without reliance on internet connectivity. You avoid the risk of downtime from ISP outages. As long as the server equipment stays powered on, the data backups remain available.
Enhanced Security
While cloud providers implement robust measures, keeping data air-gapped onsite further reduces attack surfaces from cyber criminals. Without any outside connectivity, it sits protected from remote exploits.
Greater Oversight
IT administrators can monitor everything directly with complete visibility into logs, error reports and operations. This caters nicely to organizations wanting strict control and governance over their sensitive corporate data.
Avoid Recurring Subscription Fees
At larger backup storage capacities, an owned onsite solution becomes far more affordable long term versus racking up never-ending monthly cloud service payments.
Disadvantages of Local Backups
There are also a few serious downsides to directly attached storage backup models:
Major Upfront Costs
Purchasing backup software, data storage systems, IT personnel and infrastructure represents a huge upfront capital investment often totaling over $50,000 or more.
Technical Complexity
Enterprise backup solutions feature overwhelming intricacies requiring substantial IT expertise covering storage configurations, recovery testing, patching, upgrades and product integrations.
Features Limitations
Leading SaaS backup platforms leverage cloud elasticity and economies of scale to offer far more advanced built-in features covering long term archiving, compliance reporting, ransomware protection and recovery orchestration automation capabilities most organizations struggle replicating on their own.
Low Redundancy
Unless companies replicate backups to an offsite disaster recovery location, one localized event could destroy primary data and backup copies in one swoop.
According to Kroll OnTrack research on Top Data Loss Risks, onsite incidents like hardware failures, human errors, fires, floods or electrical surges cause 55% of catastrophic data loss situations.
Insufficient Encryption
Many IT teams improperly protect local data backups leaving exposure when backup drives get misplaced, recycled or stolen.
Cloud Backup vs Local Backup Comparison
Reviewing the core differences between cloud backup and onsite options:
| Cloud Backup | Local Backup | |
|---|---|---|
| Cost | Low OPEX | High CAPEX |
| Speed | Moderate | Very High |
| Scalability | Extreme | Limited |
| Security | High | Medium |
| Accessibility | External | On-Premise |
| Disaster Recovery | Excellent | Concerning |
| Maintenance Effort | Low | High |
| Feature Set | Advanced | Basic |
| Admin Control | Minimal | Total |
To visualize the infrastructure architectural differences between these two backup methodologies:
Image Credit: DATTO
As you analyze technical variations between available data backup solutions, also consider vendor qualifications.
Vetting Backup Providers
When evaluating service providers or software vendors, ask these revealing questions:
- How long has company been in business? Look for 10+ years experience.
- What is their client retention rate? Seek over 90%.
- Do they deliver uptime SLAs like 99.9% or greater?
- Does platform offer any built-in ransomware detection?
- Where are storage locations to satisfy data sovereignty?
- Does solution easily recover isolated files vs full system images?
- Can they export backup copies if leaving for another provider?
- How long do they retain backups after contract termination?
- Does vendor offer consultative guidance tailored to your environment versus one size fits all platform?
Recommended Backup Practices
While options and feature comparison represents a starting point, more overarching data protection best practices apply in tandem with any particular solution:
Leverage Both Cloud and Local Backup
Blending cloud and local backup methods enables you to reap complementary strengths while mitigating reciprocal weaknesses of each platform. This hybrid approach provides defense-in-depth with onsite and offline data copies for guaranteed availability.
Test Restoration Procedures
Many companies first discover backup failures only when frantically attempting data recovery during a real crisis scenario. Avoid this mistake by periodically validating backup integrity through test restores before you end up needing it.
Encrypt All Data
Applying encryption provides an extra layer of protection by scrambling data so it remains inaccessible without proper credentials even if drives get misplaced or stolen during storage transition.
Document Policies
Detail organizational requirements, vendor specifications, TT protocols, and team member duties across the data backup and recovery process for clarity.
Continually Monitor Operations
Data protection platforms provide monitoring dashboards tracking backup status, failures, available storage capacity, usage trends and more. Leverage these tools to catch problems early.
Retain Multiple Versions
Maintain iterations so you can restore previous file copies when workers accidentally overwrite documents or ransomware encrypts files.
Cloud Backup Solutions Comparison
Here is an overview of leading cloud backup service providers:
| Acronis | Carbonite | Datto | |
|---|---|---|---|
| Backup Types | Disk, Files | Disk, Files, Mobile | Disk, Files, Mobile, SaaS |
| Monthly Cost per 1 TB | $60+ | $72 | $10 |
| Restore Charges | No | No | No |
| Test Restore Modes | Full + Files | Full + Files | Full + Files + BMR |
| External Drive Seeding | Yes | Yes | Yes |
| Min. Retention After Cancel | 6 Months | 90 Days | 1 Year |
*Comparison data compiled from G2 crowd user reviews and vendor websites
While these enterprise providers host and manage cloud servers, they typically rely on local partners to handle customer implementations.
Local Backup Software Comparison
There are also reliable options to automate on-premise backup operations:
| Veeam | Veritas | Commvault | |
|---|---|---|---|
| Backup Types | Disk, VM, Cloud | Disk, Files, VM | Disk, Files |
| Licensing Model | Capacity-Based | Perpetual or Sub | Capacity-Based |
| Hypervisor Support | Broad | Broad | Limited |
| Built-in Replication | Yes | Yes | No |
| Data Deduplication | Yes | Yes | Yes |
| Compression Efficiency | Excellent | Average | Excellent |
| Ransomware Recovery Tools | Yes | Yes | Yes |
These solutions focus on enterprise infrastructure comprising virtual machines and networked storage configurations. Implementation requires channel partner expertise guiding configuration and testing.
Key Takeaways
- Data loss halts business operations making backups mandatory for rapidly restoring files after incidents
- Cloud backup provides flexible, low maintenance disaster recovery but relies on internet connectivity
- Local onsite backup delivers air-gapped security yet has high upfront costs and complexity
- Blend both methods to reap complementary strengths while achieving defense-in-depth
- Seek advanced capabilities like long term archiving, compliance controls and cyber protection
- Follow best practices around consistent testing, documentation and monitoring for resilience
- Carefully vet vendor reputation, financials, technology and customer satisfaction
- Storage architectural requirements and budget realities should dictate solutions
Glossary of Backup Terms
BMR – Bare metal recovery requires full system image backups to replicate entire server installations.
Cold Storage – Low cost archival solutions for infrequently accessed data with longer retrieval times
Compression – Encoding data to minimize backup footprint and save bandwidth or storage capacity
Data Seeding – Initial bulk data transfer by shipping external media prior to bandwidth-constrained backups
Object Storage – Highly scalable cloud architecture storing data in isolated encapsulated storage pools
RPO – Recovery point objective refers to maximum acceptable data loss since last good backup
RTO – Recovery time objective defines duration acceptable for systems restoration
Versioning – Tracking incremental data revisions to allow point-in-time restoration
Hopefully this complete evaluation of premier cloud backup and local onsite solutions equips you to pursue the ideal data protection safeguards specific to your organizational needs. Reach out with any other questions as you aim to implement robust contingency protocols enabling swift restoration while eliminating data loss angst.
