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Backup Solutions

I personally use harddrive backups as the datacenter my server is in doesn't offer tape backups. Also, a second harddrive is a one time fee of $69 for a 40 GIG drive, while tape backups will sure cost more. Also with the second harddrive I can make the backups whenever I want and not whenever the datacenter wants. I do recognize the drawbacks of backing up to a second harddrive too, but it's not like I have a choice anyway...
Tape backup is an excellent, but expensive choice. Hard drive backups can have there share of problems. If a hacker breaks into your system, your "fux0red". What we do is make the backup, and send it off to a remote server on a daily basis. Its a little time consuming, but it gives me piece of mind really.
If I were a commercial host, I'd probably set up one machine to act as a backup server. I'd stuff this machine full of drives and make it as secure as possible. That solution probably has the best balance between price and safety. One of the drives could always fail, that's always a (small) risk, but tape backups cost a fotune :(