Cloud Backup vs Local Backup: Which Is Right for Your Business?
Your business data is critical. Losing it could mean lost revenue, compliance violations, or even business closure. But which backup approach is right for you - cloud, local, or both?
Head-to-Head Comparison
| Factor | Cloud Backup | Local Backup |
|---|---|---|
| Initial cost | Low (subscription) | Higher (hardware) |
| Ongoing cost | Monthly/annual fees | Maintenance only |
| Recovery speed | Depends on internet | Very fast (local) |
| Disaster protection | Excellent (off-site) | Limited (same location) |
| Scalability | Easy (add storage) | Requires new hardware |
| Control | Provider-managed | Full control |
| Compliance | Check provider terms | Your responsibility |
| Internet required | Yes | No |
Cloud Backup: Off-Site Protection
Your data is stored in secure data centers managed by your backup provider. Access and restore via internet.
Pros
- Automatic off-site protection against local disasters
- No hardware to maintain or replace
- Accessible from anywhere with internet
- Automatic encryption in transit and at rest
- Scales easily as your data grows
- Provider handles infrastructure security
Cons
- Ongoing subscription costs (can add up)
- Recovery speed limited by internet bandwidth
- Dependent on provider's reliability
- Potential compliance concerns (data location)
- Requires internet connection for backup/restore
- Less control over infrastructure
Best for: Businesses without dedicated IT, those needing disaster recovery, organizations with remote workers
Local Backup: Speed and Control
Your data is stored on-premises using NAS devices, external drives, or dedicated backup servers.
Pros
- Fastest possible recovery times
- Full control over your data
- No ongoing subscription fees
- Works without internet
- Predictable costs after initial investment
- No third-party data access concerns
Cons
- Vulnerable to local disasters (fire, flood, theft)
- Requires hardware maintenance and replacement
- You're responsible for security and encryption
- Doesn't scale easily
- Needs physical storage space
- Requires IT expertise to manage
Best for: Businesses with large data volumes, those needing instant recovery, organizations with strict data sovereignty requirements
The 3-2-1 Backup Rule
The gold standard for backup strategy combines both approaches:
Three copies
Keep three copies of your data (original + 2 backups)
Two media types
Store backups on two different types of media (e.g., local NAS + cloud)
One off-site
Keep one copy off-site (cloud or physically separate location)
NIS2 Compliance Considerations
NIS2 requires business continuity measures, including backup and recovery capabilities:
- Documented backup procedures
- Regular backup testing and verification
- Defined recovery time objectives (RTO)
- Defined recovery point objectives (RPO)
- Protection of backup data (encryption)
- Incident response for backup failures
Cost Comparison
Typical costs for a business with 500GB of data:
| Cloud Backup | Local Backup | Hybrid (Both) | |
|---|---|---|---|
| Year 1 | €300-600 | €500-1500 | €700-1800 |
| Year 2 | €300-600 | €50-200 | €350-700 |
| Year 3 | €300-600 | €50-200 | €350-700 |
| 3-Year Total | €900-1800 | €600-1900 | €1400-3200 |
| Recovery Speed | Hours-Days | Minutes-Hours | Best of both |
Local backup has higher initial cost but lower ongoing costs. Cloud offers predictable monthly expenses.
Our Recommendation
For most Belgian SMEs, we recommend a hybrid approach:
- Local backup for daily/frequent backups - fast recovery for common issues
- Cloud backup for disaster recovery - protection against site-level incidents
- Regular testing of both - verify you can actually recover
- Documented procedures - meet NIS2 requirements
Need Help Setting Up Backup?
Easy Cyber Protection includes backup guidance as part of our CyberFundamentals implementation. Get documented, tested backup procedures that meet NIS2 requirements.
Frequently Asked Questions
Is cloud backup secure?
Reputable cloud backup providers use strong encryption (AES-256), secure data centers, and strict access controls. For most businesses, cloud backup is more secure than self-managed local backup. Check that your provider encrypts data in transit and at rest.
How often should I back up?
Depends on how much data you can afford to lose. Critical data: continuously or hourly. Business data: daily minimum. Less critical data: weekly. Define your Recovery Point Objective (RPO) based on acceptable data loss.
Where should cloud backup data be stored?
For GDPR and NIS2 compliance, EU data centers are recommended for Belgian businesses. Check your provider's data residency options. Major providers (Microsoft, Google) offer EU-only storage.
How long does cloud recovery take?
Depends on data size and internet speed. 100GB over a 100Mbps connection takes about 2-3 hours. For large datasets, some providers offer physical media shipping for faster restore.
Should I encrypt local backups?
Yes, absolutely. Encrypted backups protect against theft. Use AES-256 encryption and store encryption keys securely (not with the backup). This is a NIS2/CyberFundamentals requirement.