Deciding between cloud-based or local backup solutions is a key consideration for UK SMEs looking to protect their business data. Backups are essential copies of your files and systems that can be restored if something goes wrong, such as hardware failure, accidental deletion, or a cyberattack. Cloud backups store this data remotely over the internet, while local backups keep copies on physical devices like external hard drives or on-premise servers.
Why backup choice matters for your business
Data loss or downtime can severely disrupt your operations, causing lost sales, damaged reputation, and compliance issues under UK GDPR and the Data Protection Act 2018. For example, if a ransomware attack encrypts your files, having reliable backups means you can restore your systems without paying a ransom. Without effective backup, you risk extended downtime and loss of customer trust. Cloud backups offer off-site protection and easier recovery if your premises are affected by fire or theft, while local backups may provide faster restore times but are vulnerable to local incidents.
Typical SME scenario
Consider a UK-based marketing agency with 50 staff. They initially relied on local backups stored on a server in their office. When a flood damaged their premises, the backups were lost along with the original data, causing weeks of downtime and lost client work. After this, they engaged a managed IT provider to implement a hybrid backup strategy: daily local backups for quick restores, plus encrypted cloud backups stored in UK data centres for disaster recovery. This approach improved their resilience, reduced downtime risk, and helped meet client data handling expectations.
Practical checklist for your backup approach
- Ask your IT provider: Where are backups stored? Are cloud data centres UK-based or compliant with UK/EU data protection standards?
- Check backup frequency and retention: How often are backups taken? How long are they kept? This affects your recovery options.
- Test restores regularly: Can you restore data quickly and reliably from both local and cloud backups?
- Review security measures: Is multi-factor authentication (MFA) enabled for backup access? Are backups encrypted both in transit and at rest?
- Understand costs and scalability: How do costs change as your data grows? Does the solution scale with your business?
- Check compliance alignment: Does the backup solution support audit trails and logging needed for Cyber Essentials or ISO 27001?
- Review access controls: Who can access backups? Are permissions regularly reviewed?
Next steps
Choosing between cloud and local backups isn't an either/or decision for many SMEs. A combined approach often balances speed, security, and resilience. Speak with a trusted managed IT provider or IT advisor who understands UK SME requirements and can tailor a backup and disaster recovery plan that fits your business size, budget, and compliance needs. Regular reviews and testing will keep your data protection effective as your business evolves.