The high upfront costs and ongoing cost of ownership of data backup systems is driving corporate IT to seriously consider online backup systems as viable options. As bandwidth becomes more affordable and backup hardware and software gets more expensive to own, the scale has tipped in favor of hosted services.
Large corporations have already made investments in tape and backup hardware, so they may be reluctant to scrap those investments and move to online backup services. However, as backup hardware becomes obsolete and in need of replacement, corporate IT is looking at the alternatives and hosted offsite backup services are looking more attractive everyday. Some shops are keeping their backup hardware in place for now and supplementing their backup programs with online services that store data off-site. Eventually there will be no need to maintain the old systems because online backup has reached level of maturity and IT managers are quickly getting comfortable with the security and reliability of online services.
Quoted from http://www.computerworld.com: