Cloud backups: How to protect your data

Many small businesses still assume that storing data in the cloud means it’s safe – or automatically backed up. That’s not always the case. And without a proper backup plan, one small mistake could result in major disruption.

We’ll explore what cloud backup actually means, why cloud storage isn’t enough on its own, and break down the most common backup options, so you can decide what makes sense for your business.

What is a cloud backup?

A cloud backup is a secure, restorable copy of your business data – stored remotely and separate from your day-to-day systems. If the original is lost, damaged or compromised, you can recover quickly.

It’s not the same as cloud storage. Tools like Google Drive or Microsoft OneDrive are designed for everyday access and collaboration, not long-term recovery. If a file gets deleted, overwritten or encrypted, you might not get it back.

What is the difference between cloud backup and physical backup?

Cloud backup stores your data securely online, usually across multiple offsite servers managed by a provider. A physical backup stores your data on local devices, like external hard drives, USBs or in-house servers.

The advantage of cloud backup is that your data is protected offsite, updates can be automated, and you don’t need to manage hardware or worry about theft or damage.

Physical backups give you more control. You decide where the data is stored, how it’s secured, and who has access. They can also help you recover faster because you’re not relying on internet speed or outside providers.

However, physical backups are more vulnerable to theft or damage. And if something goes wrong, there’s no offsite safety net.

Why SMEs need a cloud backup plan

Cloud-based tools are useful, but they’re not foolproof. If your data is lost or compromised, recovery isn’t guaranteed. These are some of the areas where things can go wrong:

• Cyber attacks and ransomware – Criminals can target cloud environments just like local ones, encrypting files and blocking access.

• Accidental deletion – A user mistakenly deleting a shared folder could mean it’s lost for good.

• Compromised accounts – If someone uses stolen credentials to get access, they can change or erase data without your knowledge or raising red flags.

• System errors or sync failures – Errors can lead to files being duplicated, overwritten or lost altogether. These often happen in the background and may not be noticed until you need something important.

• Service disruptions – Even the best cloud providers experience downtime or delays. If you need to restore something urgently, you may be left waiting.

• Limited version history – Some platforms only keep previous versions or deleted files for a limited time. If you don’t spot it quickly, it may be too late.

• Automatic data overwrites – Automated workflows, like CRM updates or reporting tools, can unintentionally overwrite existing data.

The business impact of lost cloud data

Losing access to your data isn’t only frustrating. It can stop your business in its tracks – and the effects can be felt for weeks.

• Client disruption and reputational damage – If you lose key files, records or comms, you may miss deadlines, delay delivery, or struggle to resolve client issues – which can all affect customer satisfaction. A single incident can also damage your reputation, especially if customers lose trust in your ability to keep their data safe.

• Compliance failures – Losing client or financial records could put you in breach of regulations like GDPR, and risk fines, audits or legal action.

• Downtime and recovery costs – Trying to rebuild systems, retrieve corrupted files or piece together lost client info takes time and is expensive — especially if your teams can’t work.

• Loss of intellectual property – Original work like designs, reports, proposals or product data can be impossible to recreate. If it’s not backed up, it’s gone, along with the time and investment behind it.

Different ways to back up your cloud data

There’s no single right way to protect your cloud-based files, but there are a few common strategies worth thinking about:

• Manual exports

Downloading or manually exporting files from your cloud platform and saving them somewhere else – either to a local device or another cloud storage service.

Pros: Low cost, easy to do.

Cons: Manual effort, inconsistent, easy to forget. Not a reliable long-term backup.

Best for: Sole traders or freelancers managing small amounts of non-sensitive or low-risk data.

• Built-in tools (Microsoft 365, Google Workspace)

Some cloud platforms offer basic version history or short-term recovery options.

Pros: Already integrated, minimum effort, minimum cost.

Cons: Can be limited in scope, control and how long data is kept.

Best for: Small teams using a single cloud platform who understand the limitations.

• Third-party cloud backups

Dedicated cloud backup services with full restore options, such as Acronis, Carbonite or Veeam.

Pros: Comprehensive, secure, and grows with you.

Cons: Ongoing subscription cost, requires setting up.

Best for: SMEs managing sensitive data, large volumes, or compliance obligations.

• Hybrid backups

A mix of local and cloud backups gives you more protection and more ways to recover.

Pros: Fast local recovery plus offsite protection if something goes wrong.

Cons: Slightly more complex to organise and manage.

Best for: Businesses with critical systems or data that need 24/7 availability.

A hybrid approach also supports the widely recommended 3-2-1 backup rule. Keep three copies of your data – the original, two backups on different types of storage, and at least one stored offsite.

Keep your data and documents safe in the cloud

Putting the right cloud backup and recovery strategy in place is easier – and more important – than ever. It protects your files, your reputation, and your ability to bounce back fast when something goes wrong.

If you’re already using cloud-based file sharing tools, or thinking of introducing them, it’s worth taking a closer look at how your data is protected. Know what’s backed up, what isn’t, and how quickly you could recover if that data disappeared.