Online backup vs. cloud storage: Differences and use cases

Online backup vs cloud storage

Data is your most important asset, and keeping it secure is critical. To protect your files against cyberattacks, hardware failure, and theft, you need online backup and cloud storage. 

What is the difference between cloud storage and online backup? 

While online backup and cloud storage sound similar (and both are capable of keeping your most valuable information safe), their core difference lies in their primary function: 

  • Online backup focuses on data protection and creating secure copies of your data for recovery 
  • Cloud storage prioritizes secure access, collaboration, and file sharing

Definition of online backup and cloud storage

There are a few key differences between online backup and cloud storage. 

Key aspectsOnline backupCloud storage
Core purposeCreates secure copies of data to restore systems in case of loss, failure, or cyberattackEnables users to securely store, access, share, and collaborate on files from multiple devices and locations
Data handlingBacks up entire systems or large predefined sets of data manually or automatically, depending on user preferenceAllows users to manually upload content or sync files and folders on their desktops
AccessibilityProvides simplified data restoration after a loss eventOffers immediate viewing, editing, and sharing of stored content from any device to those with permissions

Top use cases for online backup solutions 

Consider a scenario where your company’s business-critical files are corrupted during a power outage. To maintain business continuity, your IT team quickly logs into a remote service, locates a saved system state, and restores all affected files and systems within hours. This use case is an example of effective data loss prevention using a backup solution. 

By maintaining secure online backups, you can: 

  • Protect information against data loss from hardware failures, natural disasters, and device theft 
  • Facilitate easy recovery of accidentally deleted or overwritten files 
  • Simplify system restoration following data breaches or leaks
  • Ensure business continuity through offsite data preservation, minimizing downtime that can result from cyberattacks 
  • Meet industry or regulatory standards that mandate backup and retention, such as the Health Insurance Portability and Accountability Act (HIPAA)

According to a 2024 Proofpoint report, 84.7% of organizations experienced one or more data loss incidents in the past year. An effective strategy that automates online information backup decreases the chances of permanent data loss in the case of unforeseen circumstances. 

Top cloud storage use cases 

Imagine managing a distributed workforce across multiple continents. With team members in different time zones and environments, the risk is that they begin to work in silos, which can duplicate efforts and waste resources. To keep everyone aligned and productive, you need a solution that enables effective, real-time teamwork regardless of location. This is one scenario where cloud storage shines. 

Here are the top use cases for cloud document storage

  • File sharing and co-editing: Allowing team members to access, work on, and share documents in real time 
  • Remote work enablement: Empowering your team to access files from any location with an internet connection 
  • Data syncing: Keeping important files up to date across all devices your team uses, from computers to smartphones 
  • Project management: Storing and organizing project-related files, integrating with the critical apps your team uses daily 

Explore the best practices for scalable cloud data storage.

Benefits of using cloud solutions to store and back up data 

Cloud-based solutions are here to stay, and their adoption is only growing. According to a Pluralsight report, 94% of leaders and technologists use cloud services for technology initiatives within their organizations. 

Statistic about the use of cloud services for technology initiatives

Let’s explore the benefits of adopting both cloud backup and storage: 

  1. Streamlined security and compliance: Storing files in the cloud can simplify adherence to industry regulations like the European General Data Protection Regulation (GDPR). For example, a data protection violation under GDPR could result in fines and penalties of up to €20 million. 
  2. Increased accessibility and collaboration: Working together on documents in the cloud helps teams improve their productivity, enabling access from any device, seamless file sharing with clients, and document version control
  3. Improved scalability and cost effectiveness: Cloud-based solutions are flexible, accommodating your growing data needs while reducing the use of on-premises hardware and mitigating the costs associated with maintenance and device upkeep. 
  4. Advanced enterprise workflow automation: According to the 2024 State of SaaS report, companies use an average of 374 apps. Cloud solutions help you simplify and automate processes through intuitive app integrations, centralizing your data and increasing efficiency. 
  5. Simplified data recovery solution: Storing your backup in the cloud creates an easy file restoration solution accessible from any location, minimizing downtime, financial implications, and potential reputational damage that data loss causes. 

Benefits of using the cloud for backup and data storage

Securely store and back up your content in the cloud with Box 

Box offers a centralized, secure collaboration platform to create, edit, and share your files in the cloud. Whether you need to store or back up your content, Box has you covered. With the Intelligent Content Cloud, you streamline workflows through seamless integrations across the apps your team relies on. 

Using Box as your online backup solution helps you secure your documents, photos, videos, and presentations without having to worry about cloud storage capacity. Our failsafe backups offer you friction-free file recovery if a data loss occurs. 

With classification-based security controls, native data loss prevention, and a zero-trust approach, Box lets you safeguard your critical files, ensure business continuity, and streamline governance and compliance processes. 

Contact us to learn how Box combines cloud backup and storage into one seamless solution. 

Call to action to store and back up your files in the cloud with Box

While we maintain our steadfast commitment to offering products and services with best-in-class privacy, security, and compliance, the information provided in this blog post is not intended to constitute legal advice. We strongly encourage prospective and current customers to perform their own due diligence when assessing compliance with applicable laws.

Free 14-day trial.
No risk.

Box free trial includes native e‑signatures, lets you securely manage, share and access your content from anywhere.

Try for free