On-site backup is a good option for organizations of all sizes, especially those handling sensitive data. Learn about the pros and cons of backing up files on-site in this tip.
The rise of cloud computing led many organizations to store data backups off-site, taking advantage of potential cost savings, secure storage and an easily scalable infrastructure. But nothing lasts forever, and many businesses are choosing to move backups on-site once again.
On-site backup, also known as on-premises backup, refers to the practice of storing copies of data locally within an organization's own physical infrastructure. These copies are typically stored on dedicated servers, hard drives, tape libraries or NAS devices. This type of backup often integrates with an organization's business continuity and disaster recovery plans.
While it is unlikely that organizations will completely ditch the cloud for on-site backups, the benefits of keeping backups local are clear. Many businesses are moving specific workloads back on-site or considering hybrid options.
This article will discuss the advantages and disadvantages of on-site backups, as well as how the needs of different-sized organizations might affect backup options. It also describes several different hybrid backup configurations that incorporate the benefits of both cloud and local storage.
What are the advantages of on-site backup?
In situations where recovery speed is critical or locations have unreliable or limited internet connections, on-site backups are the obvious choice over the cloud. In addition to data access and restore speed, there are several reasons an organization might choose to store backups on-site.
Security
With on-site data backups, organizations retain complete control over their data, infrastructure and security protocols. Physical access to the backup storage can be tightly controlled, reducing exposure to internet-based threats to the cloud.
Regulatory compliance
On-site backup is ideal for businesses with sensitive data or strict compliance obligations, particularly in sectors such as healthcare, finance and government.
Fast data recovery
Since data transfer happens over internal networks rather than the internet for on-site backups, restore speeds are significantly faster than cloud-based alternatives, especially for large files or full system images.
No internet dependency
Data backup and recovery on-site work even without an internet connection, making them essential in network outages or low-bandwidth environments.
Cost
One of the major benefits of the cloud is the cost, which avoids hardware and overhead expenses. However, over time, on-site storage costs can be lower than the cost of cloud services, especially for businesses with large and growing data volumes. On-site backups also avoid ongoing monthly or usage-based cloud fees.
Customizable configuration
Organizations can tailor many on-site backup tools to meet business needs, including storage types, schedules, retention policies and encryption methods. Integration with legacy systems might also be easier than using a cloud-native option.
What are the disadvantages of on-site backup?
There are limitations and risks associated with on-site backup, which requires local infrastructure and administration.
There are limitations and risks associated with on-site backup, which requires local infrastructure and administration.
Higher initial investment
Software licenses and hardware can be expensive to set up. On-site backup costs can also include power, cooling and rack space in a server room.
Physical vulnerability
On-site backups are at risk from fire, theft, flooding, hardware failure or ransomware -- especially if kept in the same building as primary data. Without off-site replication, you risk losing all data in the event of a disaster.
Scalability limits
Physical storage space can fill up quickly as data grows, and expanding storage often requires purchasing and installing additional hardware, which takes time and money.
Limited access
Unlike with the cloud, local IT administrators must be present at the backup site to restore on-site data and maintain the infrastructure.
What does on-site backup look like for different organizations?
On-site backup infrastructure can vary significantly depending on the size, industry and IT maturity of a business. Here's how on-site backup typically looks across different types of organizations.
Small businesses (1-50 employees)
A small business, like a local bakery, law firm or design studio, can use on-site hardware such as external hard drives or NAS for local backups. Typically, basic backup software options like Windows Backup or IDrive provide sufficient administrative functions.
The risks of no off-site redundancy and vulnerability to theft, fire or ransomware are offset by simple management and low costs.
Medium businesses (50-500 employees)
Medium-sized organizations, such as manufacturing businesses, schools and accounting firms, are more likely to need rack-mounted backup servers or SAN/NAS appliances managed by software providers like Veeam or Veritas. These can run full and incremental backups with versioned snapshots. On-premises server rooms equipped with uninterruptible power supplies and climate control house the backup devices, often with replication to a second physical location.
Increased costs and complexity are mitigated by greater control and faster restores, making it more likely that the business's compliance needs will be met.
Large enterprises (500+ employees ) or high-risk data
Institutions in finance, healthcare and technology require dedicated backup servers, SAN arrays and long-term retention utilities, such as tape libraries, managed with enterprise-grade tools. They need full disaster recovery strategies, high-speed local restores, air-gapped backup copies and tiered storage.
While there is deep control over recovery and compliance, as well as regulatory constraints, there is also a high operational cost and the need for specialist IT administration.
What about hybrid options?
While cloud backup has remained consistently popular, more organizations are now shifting toward hybrid backup options. Many enterprises now use a combination of on-site and cloud backup.
A hybrid backup combines on-site and off-site backup strategies to deliver faster recovery, greater resilience and long-term data protection. This model is gaining popularity in enterprise environments where uptime, data integrity and disaster recovery are critical to mission success.
Here are several available hybrid backup options that incorporate on-site and off-site technology. Descriptions for each method include benefits, drawbacks and an example of a potential use case.
On-site backup and public cloud
In this setup, the on-site data is on NAS, SAN or backup servers in the organization's data center. The other copies are backed up to a public cloud, such as Amazon S3, Microsoft Azure Blob Storage, Google Cloud Storage or Backblaze B2.
Benefits:
Fast local restores.
Off-site protection from ransomware, fire and theft.
Pay-as-you-go cloud scalability.
Drawbacks:
Requires robust bandwidth for large cloud syncs.
Ongoing cloud costs.
Example use case: A law firm backs up to a local NAS device hourly for fast file recovery and mirrors backups to Amazon S3 nightly for disaster recovery.
On-site backup and private cloud
In this setup, the on-site data is on a local backup appliance or data server. The secondary copy is in a private cloud managed by the organization.
Benefits:
Full control over data security.
Meets strict compliance needs.
No third-party cloud risk.
Drawbacks:
High upfront and maintenance costs.
Limited scalability.
Example use case: A healthcare provider backs up on-site data to local storage and replicates it to the organization's own secure server at a remote location to comply with data protection regulations.
On-site appliance with built-in cloud sync
For this hybrid setup, backup appliances from a vendor -- such as Datto, Druva, Axcient or Unitrends -- combine local storage with automated and encrypted cloud replication.
Benefits:
Simple setup and automation.
Fast on-site recovery and cloud-based disaster recovery.
Built-in ransomware protection.
Drawbacks:
Tied to the vendor ecosystem.
Monthly subscription costs.
Example use case: A retail chain uses a Datto device that backs up point-of-sale system data on-site every 15 minutes. It pushes copies to Datto's cloud infrastructure daily.
Cloud backup with local cache
Some cloud-native backup tools, such as those from Rubrik and Cohesity, can include a local cache or edge appliance to speed up restore operations.
Benefits:
Efficient use of bandwidth.
Rapid restores.
Centralized cloud management.
Drawbacks:
Complex configuration.
Higher initial setup costs.
Example use case: A software development company uses Rubrik to back up VMs to Azure, but keeps recent versions cached locally to restore dev environments quickly.
Helen Searle-Jones holds a group head of IT position in the manufacturing sector. She draws on 30 years of experience in enterprise and end-user computing, utilizing cloud and on-premises technologies to enhance IT performance.
