The online backup industry is one of the very few who are thriving during the recession, and perhaps in part, because of it. As IT budgets are cut, companies are looking for cheaper alternatives to buying large drive arrays, building out data centers, and doing backups themselves. In many cases, it is cheaper to simply outsource their backups.

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This is a sad story about how a six year old company was done in by bad backup strategy, poor HR practices, and bad network administration. Some of the facts aren’t exactly clear, but here’s what I’ve been able to piece together so far.

“The Real Cost of Do-It-Yourself Backups, and Why Online Backup is Better”

This white paper discloses the real costs to a small business for performing proper data backups in-house using portable hard drives, then compares this with the costs and benefits of using an Online Backup Service instead. The example used is a “typical” small company without a dedicated IT person, backing up a single Windows 2003 Server using the generally recommended procedure of rotating multiple USB-attached portable hard drives offsite.