A lost data could put your business back to square one. All your crucial records collected over a period of time to serve your business better, need to be well protected. Online data backup and cloud storage fit in well for the pertaining task.

An online data backup system takes care of data encryption. This is done through a defined algorithm. You don't have to worry about encrypting your data in your computer locally. A few renowned online backup services provide a three way protection mechanism. With the first protection layer, the data is encrypted locally through a private encryption key putting the files in unreadable state. Even the service staff can't access it. The decryption is feasible only with that private key. The second protection layer, SSL connection prevents other people from spying on the data while it is getting transferred. The third protection layer encrypts the data so that it resides securely.

Automatic versioning of your files take place. This allows you to roll back in time and access the required version as per your need. Mostly, services put a limitation of 30 days or less for versioning. You should look into your requirement before choosing the service provider.

Another useful facility is automatic data de-duplication. This saves a lot of bandwidth as the data is compressed and only the changed bytes are uploaded by the server. Hence, storage cost is significantly reduced and backup speed is enhanced too.

There are certain challenges you need to take care of. There are security risks from hackers in case of an improper encryption facility. The cost is a little high when used for business purpose and also you are not in full control of the files.

Taking these challenges in mind, you should choose wisely the apt online backup service provider.