Most online data backup vendors license software from a developer and re-brand the technology as their own. The vendors then supply the software via remote installation or a web download and provide storage space at the data center for a monthly fee. Most businesses should opt for a paid online data backup service.

Note that at the extreme low end, you can find free online data backup solutions. Some web sites offer a small amount of storage in exchange for completing surveys or displaying ads on your web site. We don't recommend these services for any important data. You don’t want your critical business data in the hands of a free service – the storage capacity can fall short of your needs, it could be impossible to get support, and your data might not be there when you need it.

Large businesses with multiple offices, thousands of employees, and extremely large storage needs may want to purchase online data backup software directly from a manufacturer. It’s quite expensive – $12,000 to $80,000 or more – but gives you 100% control over your data. It’s only an option for businesses that can afford the resources and personnel necessary to manage their own offsite data center.

You may also wish to consider no- or low-cost open source online backup solutions. You'll have to compare the software for functionality and security, but the potential savings are significant. Some vendor subscription fees are 80% less than licensing costs for competitive commercial programs.

Selecting the right online data backup vendor
Start your research by only working with online data backup vendors who operate Tier 1 data centers to store your information. Tier 1 data centers are certified and HIPAA compliant so your information is always 100% secure. They are also monitored carefully by on-site personnel to ensure your data's integrity and safety.

After this initial cut, make sure the vendor offers all the online data backup features you will actually use. And learn how long each service you're considering has offered remote backup - longevity is usually a strong sign that they keep customers happy.

Also, find out what level of customer service online data backup vendors provide. Do they offer 24x7 phone and e-mail support? Who handles problems during weekends and holidays? It’s important to know how to get in touch with the vendor when you need data and can’t access it.

Never shop for an online data backup service based solely on the lowest price. Vendors that offer prices far below their competitors should raise a red flag. While cost is always an important consideration, think about the consequences of putting your data in the wrong hands.

Take full advantage of free trials. Most online data backup vendors will allow you to download the client software for free for 30 to 45 days with full access to features and a small amount of storage on their servers. This allows you to evaluate the functionality and make sure it's the right solution for your business before spending any money. Vendors may also provide free product demonstrations, either in person or through an online tutorial.

If your data is particularly valuable to you, request references, preferably in an industry similar to yours. Don't accept printed testimonials: ask if you can contact past customers directly to ask specific questions such as:

• Have you ever needed to do a major restoration? How did it go?
• How responsive is their customer service?
• Did they provide full training for you and your staff?
• Have your backups ever failed? Were you immediately notified?
• How long does it take to retrieve data from the vendor's servers?
• Did they adjust to your needs as your company grew?
• How did the vendor address your backup needs?

After checking references, you can compare free online data backup price quotes from multiple vendors for free.