Deciding where to keep your business backups—whether stored locally on your own hardware or in the cloud—is a key choice that affects how quickly you can recover from data loss and how well you protect sensitive information. Backups are copies of your important files and systems, kept safe in case of accidental deletion, hardware failure, cyberattacks, or other disruptions. The decision isn't just about technology; it directly influences your business continuity, compliance with UK regulations, and the trust your customers place in you.
Why this matters for UK SMEs
For a small or medium-sized business in the UK, downtime caused by lost or corrupted data can mean lost sales, damaged reputation, and even regulatory penalties if personal data is involved. The UK's Data Protection Act 2018 and UK GDPR require appropriate measures to protect personal data, including secure and reliable backups. Cloud backups offer offsite protection, reducing the risk that a fire, theft, or ransomware attack at your premises wipes out both your original data and your backup copies. On the other hand, local backups can be faster to restore and easier to control, but they must be carefully managed to avoid risks like hardware failure or theft.
A practical example
Consider a UK-based accounting firm with 50 staff, handling sensitive client financial records. They kept backups only on a local server in their office. When a ransomware attack encrypted their files, they found their backups were also compromised because they were connected to the same network. Recovery took days, causing client delays and regulatory reporting headaches. After this, the firm worked with their IT provider to implement a hybrid backup solution: daily local backups for quick restores, plus encrypted cloud backups stored separately. This approach improved their resilience and helped meet Cyber Essentials Plus requirements for secure data handling.
Checklist: What to consider when reviewing your backup strategy
- Ask your IT provider: Where are backups stored? Are they encrypted both in transit and at rest? How often are backups tested for integrity and restorability?
- Check access controls: Who can access backups? Is multi-factor authentication (MFA) enabled for backup systems?
- Review backup frequency and retention: Does the schedule meet your business needs and compliance obligations? Are older backups securely deleted?
- Consider recovery time objectives (RTO): How quickly can you restore data from local versus cloud backups?
- Evaluate costs and scalability: Cloud backups often have ongoing fees but scale easily; local backups may require hardware upgrades over time.
- Confirm compliance support: Does your backup solution help with audit trails, logging, and data protection policies relevant to UK GDPR and ICO guidance?
Finding the right balance
Many UK SMEs find a hybrid approach—combining local and cloud backups—offers the best balance of speed, security, and resilience. Local backups provide quick recovery for common issues, while cloud backups protect against site-wide disasters and ransomware. Whatever you choose, ensure your backup plan is regularly reviewed, tested, and aligned with your business continuity and data protection policies.
Speak with a trusted managed IT provider or IT advisor who understands UK SME needs. They can help you assess your current backup arrangements, identify gaps, and design a solution that fits your budget and risk profile without unnecessary complexity.