Also if your backing up data online consider restore time.
This is a good point, but you guys are missing the bigger point. This is Plan B or Plan C. I am not suggesting this as an complete alternative to a local backup. This is the fail safe if a real catastrophe happens. Waiting a day or two for a full restore would definitely beat loosing everything.
Even so. What happens if there are several other people trying to do a restore at the same time, i.e. a hurricane hit the area, or enough phone lines are down.
Loosing a hard drive or cd can be worked around by having more than one.
Remember also those $50 a year backup services are a limited amoutn of data, it would cost me a lot more to back up all mine.
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