Setting Up Data Backup and Recovery For Businesses: A Step-by-Step Guide

The Importance of Data Backup and Recovery

Did you know that only 15% of IT users follow the best practice of backing up data at least once a week, with 41% of users never backing up their data (Acronis)? And according to IBM's 2023 Cost of a Data Breach Report, the average cost of a data breach has risen to $4.45 million—a 15% increase over the past 3 years (IBM). These staggering statistics highlight the importance of implementing robust data backups and understanding data loss risks while taking proactive and preventive measures. Between hardware hiccups, cyber threats, natural disasters, and human errors, data loss can damage an organization’s reputation and incur significant recovery costs. In this blog, we’ll walk you through the different strategies and decisions you’ll need to make to create a backup plan that protects your data, minimizes downtime, and ensures business continuity in the face of potential data loss.

Understanding the Basic Data Backup and Recovery Terms

Before we dive in, a fundamental comprehension of the following terms is necessary:

• Data Backup: A procedure that ensures data can be restored in the event of data loss.

• Data Recovery: The recovery of data that has been lost, corrupted, or rendered inaccessible.

• Recovery Time Objective (RTO): The maximum allowable time to restore a network or application and regain access to data after an unplanned disruption.

• Recovery Point Objective (RPO): The maximum amount of data that can be lost after a recovery from a disaster or unplanned failure.

• Backup types: There are three basic types of backups: full, incremental, and differential.

Step-by-step Guide for Setting Up a Data Backup and Recovery System

Consider Your Risk When Budgeting

When budgeting for data backup and recovery solutions, it’s essential to weigh the potential cost of data loss against the expense of implementing effective safeguards. Data loss can lead to severe consequences, including operational downtime, lost revenue, and reputational damage—costs that can far exceed the investment in backup systems and security measures. By considering the value of your data and the impact a loss would have on your business, you can make informed decisions about your backup strategy and allocate resources where they’ll have the most significant long-term benefit. Remember, a proactive investment in data protection now can save substantial recovery costs and protect your business's continuity in the future.

Here are some tips to consider when budgeting for data backup and recovery solutions:

• Identify Your Critical Data: Determine which data is most essential to your operations. Prioritize protection for data that would cause significant disruption if lost.

• Calculate the Potential Downtime Costs: Estimate the cost of downtime due to data loss, including lost revenue, decreased productivity, and potential penalties for non-compliance.

• Consider Industry Compliance Requirements: Some industries have strict regulations for data security and retention. Ensure your backup solutions meet these standards to avoid fines or penalties.

• Evaluate Recovery Time Objectives (RTO): Assess how quickly your business needs to recover after data loss. Faster recovery times may require more advanced solutions, impacting your budget.

• Assess Data Growth Projections: Plan for future data storage needs based on expected growth. Implement scalable solutions that can expand as your business and data volumes increase.

• Factor in Training and Maintenance: Include costs for regular training on backup systems for relevant staff and for ongoing maintenance to keep systems updated and functioning.

Choose a Backup Strategy

Choosing a backup strategy is essential for businesses to ensure data protection, minimize downtime, and safeguard against data loss from system failures, cyberattacks, or accidental deletion. A well-chosen backup strategy not only secures critical information but also enables faster recovery, reducing the financial and operational impacts of data loss. Ultimately, a solid backup plan is a fundamental part of a business's disaster recovery and continuity strategy. There are three primary backup strategies you can choose from, each with their own advantages and disadvantages:

• Full Backup: A complete copy of all data at the time of the backup. A full backup should be completed as the first backup.

  • Pros:

    • Simple to manage since it’s an all-in-one backup without dependencies on other backup files.

    • Faster recovery time because only one backup file is needed for a full restoration.

  • Cons:

    • Time-consuming to perform, especially with large data volumes, as it involves backing up all data every time.

    • Requires substantial storage space, which can be costly over time.

    • Can place a heavy load on system resources, especially during the backup process.

• Incremental Backup: An incremental backup is only as good as its last backup. It adds just the changes since the last backup.

  • Pros:

    • Saves time and storage by only backing up data that has changed since the last backup (whether it was a full or another incremental).

    • Faster and more efficient than a full backup, as it focuses only on recent changes.

    • Reduces storage space requirements, as only small datasets are backed up incrementally.

  • Cons:

    • Slower recovery time, as you need to restore the last full backup plus all incremental backups to achieve a full restoration.

    • If one incremental backup in the chain is corrupted or missing, the entire backup sequence may be compromised.

    • Can become complex to manage due to the reliance on multiple backup files.

• Differential Backup: A differential backup adds all the changes since the last full backup.

  • Pros:

    • Balances time and storage efficiency by only backing up changes since the last full backup.

    • Faster recovery time than incremental backups because only the last full backup and the most recent differential backup are needed for a complete restoration.

    • Less resource-intensive than a full backup, making it easier on system performance.

  • Cons:

    • As changes accumulate, differential backups grow larger, which can slow down the backup process and increase storage requirements over time.

    • Generally larger in size than incremental backups, meaning it requires more storage than incremental methods.

    • Slightly more complex to manage than a full backup due to the need to track both full and differential backups.

Choose Your Backup Storage Solution

Selecting a backup storage location—whether on-premise, cloud, or hybrid—is crucial for businesses to balance data accessibility, security, and cost. On-premise storage offers direct control and quick local access, while cloud storage provides scalability and offsite protection against local disasters. A hybrid approach combines both, giving businesses the benefits of on-premise speed and control with the cloud’s resilience and scalability, making it the most robust solution for comprehensive data protection and recovery.

Here is an overview of the three types of storage locations:

• On-Premises Storage: Storage located on the organization’s premises, including external hard drives, network attached storage (NAS), and tape drives.

  • Pros:

    • Full Control: Businesses have complete control over their data and backup infrastructure.

    • Quick Recovery: Data can be restored quickly since it’s stored locally, minimizing downtime.

    • Increased Security: Since data remains onsite, there is less exposure to external threats like hacking or unauthorized access.

  • Cons:

    • High Initial Costs: On-premise storage requires significant upfront investment in hardware and ongoing maintenance costs.

    • Limited Scalability: Expanding on-premise storage can be challenging and expensive as data storage needs grow.

    • Risk of Local Disasters: Natural disasters, theft, or hardware failures can compromise on-premise data, potentially leading to complete data loss if backups are not stored offsite.

• Cloud Storage: Storage offered by a cloud service provider, like Amazon Web Services (AWS), Google Cloud Platform, or Microsoft Azure, and is remote from the organization.

  • Pros:

    • Scalability: Cloud storage can easily expand as data needs grow, accommodating fluctuating storage requirements.

    • Offsite Protection: Data is stored remotely, providing protection against local disasters and enabling recovery even if onsite data is lost.

    • Reduced Maintenance: Cloud providers handle infrastructure maintenance, reducing the need for in-house IT resources.

  • Cons:

    • Internet Dependency: Backup and recovery rely on internet connectivity, which can be a bottleneck if there are connectivity issues.

    • Potential Recovery Delays: Large data recovery from the cloud can be time consuming, especially if internet speeds are limited.

    • Ongoing Costs: Cloud storage involves recurring fees, which can add up as data volumes increase.

    • Security Concerns: Although secure, cloud storage may still be vulnerable to breaches or compliance issues, depending on where data is stored.

• Hybrid Storage: Storage that is both cloud and on-premise. A common saying is you’re never fully backed up until you have at least two copies in two locations, this method allows for that failsafe.

  • Pros:

    • Enhanced Flexibility: Combines on-premise speed and control with cloud scalability and remote protection, offering a balanced solution.

    • Better Disaster Recovery: Data can be recovered locally for quick access or from the cloud if onsite data is compromised.

    • Cost Efficiency: Reduces the need for extensive on-premise storage and infrastructure while leveraging the cloud for larger or less frequently accessed data.

  • Cons:

    • Complex Management: Managing both on-premise and cloud storage requires careful planning and can be more complex than single storage solutions.

    • Higher Costs: Hybrid solutions may involve costs for both on-premise infrastructure and cloud services.

    • Dependency on Multiple Systems: Businesses need to maintain two systems and ensure they are synchronized, which can require more IT resources and oversight.

Establish a Regular Schedule for Data Backups

All the tools and strategies in the world won’t make up for bad data habits, which is why establishing a recurring backup schedule is a critical component to being data smart. These backups can be done manually, but we recommend automating them with backup software, if possible, so you don’t forget and they don’t become a burden to business operations (note: backup software is often included with cloud and NAS products). The frequency of your backups should be thought out in advance. Depending on how often your data is changing, you can adjust the backup schedule. For example, if your data doesn’t change that often and is critical, you might consider backing up weekly. If your data is changing constantly, you may want to backup every day. This is where choosing either an incremental or differential backup strategy works best, as archival data that is not frequently accessed does not need to be backed up at the same frequency.

Put Data Security Measures in Place

Simply backing up your data is not sufficient to ensure it remains safe; robust security measures are essential to protect backups from cyber threats, unauthorized access, and data corruption. Without proper security protocols, backup data can be exposed to risks like ransomware attacks, theft, or accidental deletion, which can lead to severe operational and financial impacts. Implementing security measures, such as encryption, access controls, and regular monitoring, helps safeguard sensitive information, maintain data integrity, and ensure that backups are truly reliable when needed for recovery.

Here are a few key ways to protect your data:

• Encryption: Backed-up data should be encrypted so that only those who are supposed to have access to it can read it. In addition, by encrypting backup drives, ransomware attacks (that encrypts data on the systems it infects) may not be able to access the data.

• Secure Transmission: When using a cloud service, make sure that the data being sent to the cloud is also secured. You can do this by using a cloud-to-premises and premises-to-cloud secure data transmission protocol. Some common secure protocols are Secure Sockets Layer (SSL) and Transport Layer Security (TLS).

• Access Control: Make sure that the data is only accessible to authorized users on an as-needed basis. Backup integrity is important to ensuring business continuity and organizational resiliency.

Document Your Backup and Recovery Plans

Without proper documentation, your business could be left in the dark if key personnel familiar with the backup system leave. This gap in knowledge can lead to confusion during critical recovery situations, potentially increasing downtime and disrupting operations. A documented backup plan serves as a comprehensive guide, detailing everything from backup schedules and storage locations to encryption protocols and recovery steps. By including access permissions and contact information for responsible personnel, you ensure that your team has the resources they need to manage backups and perform data recovery efficiently. Regularly updating this documentation also keeps it aligned with evolving business needs, compliance requirements, and technological changes, making it a vital component of your overall data protection strategy.

Test Your Backup and Recovery Methods

Testing your data backup and recovery methods is crucial to ensure that your systems work as intended when you need them most. A backup plan that has not been tested may contain overlooked issues, such as corrupted files, incomplete data, or misconfigured processes, which can delay or even prevent a successful recovery. By regularly testing your backup and recovery methods, you can identify and address any weaknesses, confirm data integrity, and gain confidence that your business can quickly restore critical information in the event of a data loss incident.

Here are some things to keep in mind for testing your data backups and recovery:

• Frequency: The data system should undergo backup and restore tests at least twice a year to guarantee the most current data can be restored.

• Verification: The tests must verify that not only the most current data can be restored in a usable format but also that the restore process works smoothly.

• Documentation: Backup and restore procedures must be documented completely and tested against real-world scenarios in which the procedures would be used.

Monitor and Maintain Your Data Backup System

As Murphy’s Law states, “Anything that can go wrong, will go wrong”—and this holds especially true for critical systems that are left unattended. Regularly check your backup systems to ensure they are functioning. Even new systems require constant monitoring in the beginning, as there may be issues with the setup that you won't discover until it has been put to the test (and in this case, the test is a restore!). But do not become complacent once you’ve established everything is working as intended. Hardware failures can occur at any time, and for storage media such as spinning disk drives, it is a matter of when, not if. Monitor your HDD’s using their own Self-Monitoring, Analysis, and Reporting Technology (SMART) system to stay ahead of disk failures. Changes in your digital environment may impact your data backups without you knowing.

Always check on your backups after any of the following occurs:

• Operating System (OS) Updates: New OS versions or patches can lead to compatibility issues with existing backup software, potentially causing backups to fail or preventing older backups from being restored correctly.

• Hardware Changes: Upgrading or replacing hardware, such as servers or storage devices, can disrupt backup processes if the new hardware isn’t configured correctly or if it lacks compatibility with the backup system.

• Software Updates and Changes: Updates to backup software or other critical applications can introduce bugs, alter settings, or cause conflicts that impact backup and recovery operations.

• Network Configuration Changes: If the network environment changes (e.g., firewall updates, IP address changes, or new security protocols), backup systems might lose access to necessary data sources or storage locations.

• Encryption Key Changes or Loss: If encryption keys used to protect backups are updated or lost, it could make encrypted backups inaccessible or unrecoverable.

• Power Outages or Lightning Storms: These can damage hardware, interrupt backup processes, or cause data corruption, especially if systems are not connected to surge protectors or backup power sources.

• Personnel Changes: Transitions in IT staff or backup management personnel can lead to knowledge gaps or miscommunications, potentially resulting in overlooked updates, missed backups, or changes in backup procedures that affect the reliability of recovery.

Additional Tips or Advice

• Schedule Backups During Off-Peak Hours:

  • Minimize the impact on network and system performance by scheduling backups during times when business activity is lower, such as overnight or during weekends.

• Set Up Automated Alerts:

  • Configure alerts for your backup system to notify you of any failed backups, potential errors, or hardware issues, so you can address them promptly.

• Store a Backup Offsite:

  • Even if you primarily use on-premise or hybrid storage, consider keeping an additional copy of critical backups in a different physical location to protect against local disasters.

• Replace Your HDD’s Every 3-5 Years:

  • As mentioned above, spinning disk drives will all fail eventually. To keep ahead of those failures, it is generally recommended that you replace those drives every 3-5 years. This number will vary based on the quality of the drives and how hard they’re used. Drives that are constantly in use, especially in business environments, may experience more wear and should be replaced closer to the 3-year mark.

  • For maximum lifespans, try to keep your drives in a consistently cool and dry climate. Excessive heat or humidity can significantly shorten the life of your drives.

  • Some manufacturers offer trade-in or return programs where you can send failed drives back to them for recycling, and you may even receive credit towards a replacement. These manufacturers will often recondition these HDDs and resell them for a discount, which you can also take advantage of to save more money when replacing your HDDs.

Wrapping Up

Establishing a robust data backup strategy is more than just a safety measure—it’s a fundamental investment in your business’s resilience and continuity. By understanding the different types of backups, choosing the right storage solutions, and implementing strong security measures, you can protect your data from unforeseen disruptions and ensure quick recovery when needed. Regular monitoring and testing of your backup systems further ensure that they perform reliably over time. Remember, the cost of prevention is almost always less than the cost of recovery, so weigh your risks thoughtfully and budget accordingly to safeguard the future of your business.