pc or mac?
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In theory, I should do both.
do you need your whole computer backed up, or certain files? how much space?
We use Mozy (for our PC). It's affordable, but we haven't had to use it to restore anything yet. 2GB free, and I forget how much we prepaid for 2 years. I think it was like $5 a month.
You will be surprised at how long it takes for the initial backup.
Still have not tried it, but carbonite looks like a good (if pricey) option. You can do automatic or manual backups. You can do the "every time you save a file it saves on-line as well" thing, or only backup during scheduled or manual backups. (And you can be selective - choose how things are backed up on a directory by directory and file by file backup.) You can use the carbonite software to handle your local backups as well as the on-line ones. $50 to $100 per year for most people's needs, which makes more expensive than Mozy and most other choices. Not a rec cause I have not tried it, but it is probably the one I'm going to end up trying. Right now my backup is DVD plus gmail to self for critical files.
I have an insanely comprehensive redundant backup and archive routine. I don't think I'm of help on this.
If you don't need the whole hard drive backed up, I am a fan of dropbox which essentially syncs files across multiple computers. The free accounts start small, but you can get a premium account which adds more space. The premium account gives you more space (50Gb or 100) also lets one keep multiple version of files, so if you delete one today, you can go back to your acct archives to find it in June.
I'm trying Carbonite -- which through cloud connectivity, lets me access backedup documents on other computers, INCLUDING my iPod Touch. Maybe I should try the Mozy free solution for the less critical docs on my Mac iBook....
Dropbox is more expensive than carbonite for the paid versions. And Carbonite does multiple file versions too, though old versions of files do expire, so still backup not archiving. But have tried neither and if DropBox works better than it would be worth the difference.
I have never used carbonite, but I understand there are people out there who have had problems with the service. I think this may have been an issue 2-3 years ago and they have worked out the kinks now.