When deciding how to keep your business backups safe, the choice often comes down to whether to store them locally on your own hardware or in the cloud via an external provider. Both options aim to protect your critical data from loss, but they differ in how they manage risks like hardware failure, cyberattacks, and accidental deletion. Understanding these differences helps you make a practical decision that supports business continuity and compliance.
Why backup storage matters for UK SMEs
For a small or medium-sized business in the UK, losing access to important data can cause significant downtime, disrupt staff productivity, and damage customer trust. For example, if your customer records or financial information become inaccessible, you may struggle to operate day-to-day or meet regulatory requirements such as UK GDPR and the Data Protection Act 2018. Ensuring backups are secure and quickly recoverable reduces these risks and supports audit readiness, especially if you handle sensitive personal data or payment card information (PCI DSS).
A typical scenario: local vs cloud backups
Consider a UK-based company with around 50 employees that stores backups on an on-site server. One day, a ransomware attack encrypts their files, including the backups stored locally. Because the backups were connected to the same network, the attack spreads to them, leaving the business unable to restore data quickly. A trusted IT partner would recommend keeping backups offsite or in the cloud, isolated from the main network, to prevent this. They might also implement Cyber Essentials Plus controls such as multi-factor authentication (MFA) and strict access permissions to secure backup access.
Key factors to consider when choosing backup storage
- Security: Does the backup location support encryption both in transit and at rest? Are access controls and MFA enforced to prevent unauthorised access?
- Availability: How quickly can you restore data from backups? Cloud backups often offer faster recovery options and geographic redundancy.
- Compliance: Does the storage solution help you meet UK data protection standards and support audit trails or logging?
- Control and visibility: Can you easily monitor backup status and verify that backups are completed successfully?
- Costs and scalability: Consider ongoing costs and whether the solution can grow with your business.
Practical checklist for your backup strategy
- Ask your IT provider where backups are physically stored and what security measures protect them.
- Check if backups are encrypted and whether encryption keys are managed securely.
- Verify that backups are stored separately from your primary network to reduce ransomware risk.
- Confirm how often backups are performed and tested for successful restoration.
- Review access logs and permissions to ensure only authorised staff can manage backups.
- Ensure your provider supports compliance requirements relevant to your sector, such as UK GDPR or PCI DSS.
- Request documentation on backup policies and disaster recovery plans as part of your service agreement.
Choosing between cloud and local backup storage depends on your business's specific needs, risks, and resources. Many UK SMEs find a hybrid approach effective—keeping recent backups locally for quick access, while maintaining secure cloud copies for disaster recovery. To develop a resilient backup strategy tailored to your organisation, it's wise to consult a trusted managed IT provider or IT advisor. They can help assess your current setup, recommend improvements aligned with UK cybersecurity best practices, and support ongoing compliance and audit readiness.