Cloud Backup vs. Local Backup: Best Backup Option in 2025

In today’s digital-first world, data is the backbone of every business. Whether you run a small office, a growing IT firm, or a large organisation with multiple locations, your files, systems, and client data are mission-critical. That’s why one of the most common questions businesses ask is:

“Should I use cloud backup or local backup?”

With cyber threats, hardware failures, and even human error on the rise, choosing the right data backup strategy is no longer optional—it’s essential. Industry experts expect this urgency to grow significantly by 2025, driven by emerging risks and evolving infrastructure demands.

In this guide, we’ll explain the key differences between cloud backup and local backup, their pros and cons, and help you determine which option (or combination) best suits your business needs in 2025.

What Is the Difference Between Cloud Backup and Local Backup?

Let’s start with definitions.

• Cloud backup (online or off-site backup) refers to storing data remotely via the internet, using cloud-based infrastructure. Examples of popular cloud backup services include Acronis, Backblaze, Datto, and Microsoft Azure Backup.
• Local backup stores your data physically on-site—usually on external hard drives, USBs, dedicated backup servers, or NAS (Network-Attached Storage) devices.

While both methods protect your data, they offer very different levels of accessibility, speed, cost, and security.

Pros and Cons of Local Backup

✅ Pros of Local Backup

• Faster Recovery: Local backups allow for quick restoration of large files, especially when restoring entire systems.
• No Internet Dependency: Backups and recoveries don’t rely on internet speed or availability.
• Full Control: You manage and monitor the storage, so you always know where your data resides.
  
  

❌ Cons of Local Backup

• Vulnerability to Physical Threats: Fire, flood, theft, or hardware failure could destroy your backups.
• Manual Maintenance: Drives degrade. Backup processes can fail. Someone must check regularly.
• Limited Scalability: When you run out of space, you must invest in more hardware.

Security Note: Even if you’re using encrypted drives, physical security is still a weak point compared to cloud backups.

Pros and Cons of Cloud Backup

✅ Pros of Cloud Backup

• Off-Site Redundancy: Your data is protected during on-site disasters or theft.
• Automated Backups: Most solutions run in the background with minimal manual input.
• Highly Scalable: Easily increase storage capacity as your business grows.
• Remote Access: Access and restore files from anywhere, at any time.

❌ Cons of Cloud Backup

• Internet Dependence: Slow or interrupted connections can delay backups or restores.
• Recurring Costs: Monthly or annual fees based on storage usage.
• Perceived Lack of Control: You trust a third party with your critical data, though many providers offer strong encryption and access control features.

Security Tip: Look for cloud backup services that offer AES-256 encryption, multi-factor authentication, and ISO 27001 certification. Providers like Superfast IT can help ensure these standards are met as part of a secure, business-ready backup solution.

How Secure Is Cloud Backup?

Security is often the top concern when comparing cloud and local backup solutions. It’s a valid concern — after all, your backup is only as good as its ability to protect your data from loss, theft, or breach. However, cloud backups are now among the most secure options available, provided you partner with a reputable provider.

Modern cloud backup platforms offer advanced protection, including:

• Military-grade encryption

Data is encrypted both in transit (as it’s being uploaded/downloaded) and at rest (while stored), often using AES-256 standards — the same used by governments and defence organisations.

• Geo-redundant storage

Your data is automatically backed up across multiple geographically separate data centres, reducing the risk of data loss from local outages, disasters, or hardware failures.

• Continuous monitoring and threat detection

Leading platforms use AI-driven monitoring to detect anomalies, flag suspicious activity, and even proactively defend against ransomware targeting backups.

• Strict regulatory compliance

Providers adhere to international standards such as GDPR, HIPAA, SOC 2, and ISO 27001, ensuring that data handling and storage meet the highest benchmarks for privacy and security.

• Role-based access controls and audit trails

You can define exactly who has access to your backups — and view detailed logs of when and how data is accessed.

In fact, for most SMEs, reputable cloud backup services typically provide far stronger data security, redundancy, and disaster recovery capabilities than what could be achieved with internal infrastructure alone — not to mention lower upfront costs and reduced maintenance overhead.

So while local backups can still play a role in a hybrid strategy, cloud-based solutions are increasingly the default choicefor resilient, secure, and scalable business continuity.

What’s the Best Practice? Use the 3-2-1 Backup Strategy.

Many experts recommend combining cloud and local backup into a hybrid backup strategy rather than choosing one over the other.

💡 The 3-2-1 Rule of Backup:

• Keep 3 total copies of your data

This includes the original file plus two backup copies.

• Store them on 2 different types of media

For example: a local server and a cloud-based platform.

• Ensure 1 copy is stored off-site

Cloud storage is ideal for this, protecting against theft, fire, flood, or local system failures.

With this approach, you get:

• Fast recovery from local backups

Quickly restore files from an on-site device in case of accidental deletion, software errors, or hardware issues — no internet required.

• Disaster resilience from cloud backups

If your premises are hit by ransomware, a fire, or flooding, your off-site cloud backup ensures business continuity with minimal disruption.

• Peace of mind knowing your bases are covered

Knowing your data is secured locally and remotely offers reassurance — and often helps meet compliance or cyber insurance requirements.

Frequently Asked Questions

Do I need backup if I use Microsoft 365 or Google Workspace?

Yes. These platforms have basic version history and retention but don’t offer comprehensive protection against accidental deletion, ransomware, or malicious actions. Use a dedicated backup tool that integrates with these platforms for proper protection.

Is cloud backup expensive?

No—it’s usually charged per GB or device and scales with your usage. More importantly, it prevents costly data loss, which can lead to operational downtime, lost contracts, and reputational damage.

How long should I keep backups?

It depends on your compliance needs. For example:

• GDPR: Retain only as long as necessary
• FCA: Up to 7 years
• General best practice: Keep at least daily backups for 30–90 days and monthly/yearly archives

Local vs. Cloud Backup: Final Thoughts

If you’re a business owner or IT manager looking for secure, reliable, and scalable data protection, here’s what to remember:

• Local backup offers control and speed, but it’s vulnerable to physical loss.
• Cloud backup offers flexibility, automation, and resilience—but depends on a stable internet connection.
• Combining both is the gold standard—providing the speed of local restore and the safety net of off-site redundancy.

Don’t wait until disaster strikes to realise your data wasn’t protected. Evaluate your current backup setup and ask:

"If my business lost access to its data right now, how quickly could we recover?"

Need Help Choosing the Right Backup Solution?

We help businesses across Birmingham and the West Midlands implement secure, scalable backup strategies as part of a broader approach to IT resilience. Whether you’re looking to back up Microsoft 365, protect on-premise servers, or secure remote work environments, our locally focused team ensures your data stays safe, recoverable, and fully aligned with your business needs.