When it comes to protecting your business data, deciding between backing up to physical drives or using cloud-based backups is a common question. Both methods aim to safeguard your important files and systems, but they work very differently and come with distinct advantages and risks. Understanding these differences can help you choose the right backup approach for your business needs.
Why reliable backups matter for Australian SMBs
Data loss can happen in many ways: hardware failure, accidental deletion, ransomware attacks, or natural disasters like floods or fires. For small and mid-sized businesses, even a few hours of downtime or lost data can lead to lost sales, damaged reputation, and costly recovery efforts. Compliance with Australian privacy laws also means you must keep customer and employee information secure and retrievable.
Choosing the right backup method directly affects how quickly and effectively you can restore your operations after an incident. It also impacts ongoing risks such as cyber threats and physical damage to hardware.
A typical scenario: How a 50-person business might approach backups
Imagine a Sydney-based marketing firm with around 50 staff. They store client projects and financial records on local servers and currently back up data nightly to external hard drives kept onsite. One day, a ransomware attack encrypts their server files. Because their backups are on physical drives connected to the same network, the malware also infected those backups, leaving them with no clean copies to restore.
After this incident, the firm's IT partner recommended a hybrid backup strategy: maintaining local backups for fast recovery, but also using cloud backups stored offsite and isolated from the network. This approach reduced their risk of total data loss and improved recovery speed, helping them resume client work within hours rather than days.
Key factors to consider when comparing cloud and physical backups
- Data security and isolation: Cloud backups are stored in secure data centres, often with encryption and multiple copies, reducing risk from local disasters or theft. Physical drives can be stolen, damaged, or corrupted if not stored properly.
- Accessibility and recovery speed: Local physical backups can be faster to restore from if you have large amounts of data, but cloud backups offer access from anywhere, which is useful if your office is inaccessible.
- Cost and scalability: Physical drives have upfront costs and require manual management. Cloud services usually charge monthly fees based on storage used and can scale easily as your data grows.
- Maintenance and management: Physical backups need regular testing, rotation, and secure storage. Cloud backups are often managed by providers, reducing your internal workload.
- Compliance and data sovereignty: Ensure cloud providers store data within Australia or comply with relevant privacy laws to meet your regulatory obligations.
Practical checklist: What to ask and check with your IT provider
- Do you recommend a cloud, physical, or hybrid backup solution for my business size and data type?
- Where are the cloud backup data centres located? Are they compliant with Australian privacy and security standards?
- How often are backups performed, and how quickly can data be restored?
- Are backups encrypted both in transit and at rest?
- Can I access backup logs or reports to verify backups are successful?
- What is the process for testing backup restoration to ensure data integrity?
- How are physical backup drives stored and protected from theft, damage, or malware?
- What are the costs involved, including any fees for data retrieval or additional storage?
- Do you provide support for managing backup schedules, updates, and troubleshooting?
Regularly review your backup strategy with your IT provider to ensure it adapts to your changing business needs and emerging risks.
Choosing the right backup solution is a critical part of protecting your business's data and continuity. Speaking with a trusted managed IT provider or advisor can help you assess your current setup, understand the trade-offs, and implement a backup approach that balances security, accessibility, and cost effectively.