When considering how best to protect your business data, a common question is whether to rely on cloud backups or external drives. Both methods aim to safeguard your important files, but they work quite differently and come with distinct advantages and risks. Understanding these differences helps you choose the right approach for your business needs.
Why backup choice matters for UK SMEs
Data loss can cause serious disruption, from lost sales and staff downtime to damaged customer trust and regulatory penalties under UK GDPR or the Data Protection Act 2018. For example, a ransomware attack might encrypt your files, or a hardware failure could wipe out your local data. Without reliable backups, recovery can be slow or impossible, threatening your business continuity and compliance with standards like Cyber Essentials or ISO 27001.
A typical scenario
Consider a UK-based SME with around 50 employees handling customer records and financial data. They initially used external hard drives for backups stored onsite. One day, a flood damages the office and the drives, resulting in data loss. Their IT partner recommends moving to a cloud backup service that encrypts data and stores it offsite. This enables faster recovery after incidents and reduces the risk of physical damage. The IT provider also sets up automated backup schedules and multi-factor authentication (MFA) to enhance security.
Comparing cloud backups and external drives
- Cloud backups store your data on remote servers managed by a provider. They offer offsite protection, automated scheduling, encryption, and easy scalability. However, they depend on internet connectivity and require trust in the provider's security and data handling practices.
- External drives are physical devices connected to your computers or network. They offer direct control and no ongoing subscription costs but are vulnerable to theft, damage, or loss if kept onsite. Offsite storage of drives is possible but requires strict processes and discipline.
Practical checklist for your backup strategy
- Ask your IT provider how backups are stored and secured, including encryption and access controls.
- Check if backups are automated and tested regularly to ensure data can be restored.
- Confirm whether backups are stored offsite or in multiple locations to protect against physical disasters.
- Review access logs and permissions to ensure only authorised staff can access backup data.
- Verify if multi-factor authentication (MFA) is in place for backup system access.
- Ensure your backup solution supports compliance requirements relevant to your sector, such as PCI DSS if you handle payments.
- Request a clear recovery time objective (RTO) and recovery point objective (RPO) to understand how quickly data can be restored and how much data loss is acceptable.
Choosing between cloud and external drive backups depends on your business size, budget, risk tolerance, and compliance needs. Many SMEs find a hybrid approach effective—using cloud backups for critical data and external drives for quick local restores. Whatever you choose, regular testing and clear policies are essential.
It's advisable to discuss your backup strategy with a trusted managed IT provider who understands UK SME challenges and compliance standards. They can help design a solution tailored to your business, ensuring your data remains safe and your operations resilient.