Cloud backup vs local backup: what a small business really needs

Backups only matter when something goes wrong, which is exactly when people find theirs don’t work. Here’s a realistic setup using the 3-2-1 rule.

Everyone agrees backups are important, right up until they need one. The awkward truth is that a lot of small businesses either have no backup, or have one nobody has ever tested. When a laptop dies or ransomware locks everything up, that’s a bad moment to discover the gap. So let’s keep this practical: what do you actually need, and what’s overkill?

Local backup: fast, cheap, but in the same room

A local backup is a copy kept on-site, usually an external hard drive or a small network drive (a NAS). The upside is that it’s quick to set up, quick to restore from, and there’s no monthly fee. If you delete a file by accident or a machine fails, you’re back up and running in minutes.

The downside is that it’s in the same building as the thing it’s protecting. A fire, a flood, a break-in or a ransomware infection that spreads across your network can take out your original data and your backup in one go. A local backup on its own is better than nothing, but it isn’t enough by itself.

Cloud backup: off-site by default

A cloud backup copies your data to a data centre somewhere else, over the internet. The big advantage is that it’s off-site automatically, so a disaster at your premises doesn’t touch it. It also tends to run quietly in the background once set up, which means it keeps happening even when you forget.

The trade-offs are a monthly cost, and that restoring a large amount of data can be slow because it all has to come back down your connection. Do check where the data is stored and how it’s encrypted, particularly if you hold personal data and need to keep things tidy under UK GDPR.

One important point: Microsoft 365 and Google Workspace are not backups. They sync and store your live data, but if a file is deleted or an account is compromised, that change syncs everywhere. A proper backup keeps older versions you can roll back to.

The 3-2-1 rule, in plain terms

The standard advice, and it’s good advice, is the 3-2-1 rule:

• 3 copies of your data (the live version plus two backups).
• 2 different types of storage (for example a local drive and the cloud).
• 1 copy off-site (the cloud copy covers this).

It sounds like a lot, but in practice it’s usually one local backup and one cloud backup running alongside your working files. That combination gives you fast recovery for everyday mishaps and genuine protection against the bigger disasters.

A realistic setup for most small businesses

You don’t need anything elaborate. For a typical small firm, this works well:

• A cloud backup service running automatically every day.
• A local backup drive or NAS for quick restores.
• A calendar reminder to actually test a restore every few months.

That last point matters more than the kit. A backup you’ve never restored from is a hope, not a plan. Once or twice a year, pick a file and confirm you can genuinely get it back. It takes ten minutes and it’s the only way to know your setup works.

What to avoid

Don’t rely solely on a single USB stick that lives in a drawer. Don’t assume the cloud sync you already pay for is a backup. And don’t over-buy: a small business rarely needs enterprise backup appliances or the most expensive tier of anything. Match the spend to what the lost data would actually cost you in time and trouble.

If you’d like help setting up a backup that runs itself and has actually been tested, SeddCo can sort that out and keep an eye on it for you. Give us a call on 01746 325326 and we’ll recommend something sensible for your size.