Every business needs backups. That part isn't up for debate. But the question we get asked most often is: should I back up to the cloud, to a local device, or both?
The answer depends on your business, your budget, and how quickly you need to recover if something goes wrong. Let's break down the differences so you can make an informed decision.
What Is Local Backup?
Local backup means storing copies of your data on a physical device in your office - typically an external hard drive, a NAS (Network Attached Storage) device, or a dedicated backup server. The data stays on your premises and is directly accessible over your local network.
Advantages of Local Backup
- Fast recovery - Restoring data from a local device is significantly faster than downloading from the cloud, especially for large files. If your server dies and you need to restore hundreds of gigabytes, local backup can save you hours or even days.
- No internet dependency - Your backups work even if your internet connection goes down. You can access and restore data entirely on your local network.
- One-time hardware cost - After the initial purchase of a NAS or external drive, there are no ongoing subscription fees (though you will eventually need to replace the hardware).
- Full control - Your data stays in your building, which can be important for businesses with strict data sovereignty requirements.
Disadvantages of Local Backup
- Vulnerable to physical events- A fire, flood, theft, or power surge can destroy both your live data and your backups if they're in the same location.
- Ransomware risk - If your backup device is connected to your network, ransomware can encrypt it along with everything else.
- Hardware maintenance - Drives fail. NAS devices need firmware updates. Someone has to monitor, test, and eventually replace the hardware.
What Is Cloud Backup?
Cloud backup means sending encrypted copies of your data to a remote data centre over the internet. Services like Datto, Veeam, Acronis, and Backblaze Business are common options. Your data is stored offsite and managed by the backup provider.
Advantages of Cloud Backup
- Offsite by default - Your data is stored in a secure, geographically separate location. If your office burns down, your backups survive.
- Ransomware protection - Good cloud backup solutions use immutable snapshots that cannot be altered or deleted, even by ransomware that has compromised your entire local network.
- Automated and monitored - Cloud backups run automatically on a schedule, and your IT provider receives alerts if anything fails.
- Scalable - Need more storage? Just upgrade your plan. No hardware to buy or install.
Disadvantages of Cloud Backup
- Slower recovery for large restores - Downloading hundreds of gigabytes over the internet takes time, especially on Australian broadband. A full server restore from cloud can take a day or more.
- Ongoing subscription cost - Cloud backup is typically priced per gigabyte or per device, per month. Costs add up over time.
- Internet dependency- If your internet is down, your backups can't run and you can't restore from cloud.
Cloud vs Local: Side by Side
| Factor | Local Backup | Cloud Backup |
|---|---|---|
| Recovery speed | Fast (minutes to hours) | Slower (hours to days) |
| Disaster protection | Vulnerable (same location) | Protected (offsite) |
| Ransomware safety | At risk if network-connected | Safe with immutable snapshots |
| Cost model | Upfront hardware | Monthly subscription |
| Internet required | No | Yes |
| Maintenance | Hardware upkeep needed | Managed by provider |
The Best Approach: Use Both
For most small businesses, the right answer is a hybrid approach that combines local and cloud backup. This is the basis of the 3-2-1 backup strategy: three copies of your data, on two different types of storage, with one copy offsite.
In practice, that looks like this:
- Your live data on your server or workstations
- A local backup on a NAS device for fast recovery
- A cloud backup for disaster protection and ransomware resilience
This gives you the speed of local backup for day-to-day incidents (like accidentally deleting a file or a hard drive failing) and the safety of cloud backup for worst-case scenarios (like ransomware, theft, or fire).
What About Microsoft 365 Data?
A common misconception is that Microsoft backs up your 365 data for you. They don't - at least not in the way you'd expect. Microsoft provides infrastructure-level redundancy, but they are clear in their terms of service that protecting your data is your responsibility.
If an employee accidentally deletes a SharePoint site, a former staff member's mailbox is purged, or ransomware encrypts your OneDrive files, Microsoft's built-in retention may not save you. An independent Microsoft 365 backup solution protects your email, Teams, SharePoint, and OneDrive data separately from Microsoft's own systems.
Getting Your Backup Strategy Right
A backup is only as good as its last successful restore. Whatever approach you choose, make sure your backups are automated, monitored for failures, and tested regularly. We've seen too many businesses discover their backups haven't been working only when they need them most.
If you're not sure whether your current backup strategy is up to scratch, we offer a free assessment. We'll review what you have in place and recommend the most cost-effective approach for your situation.