What is the 3-2-1 backup strategy?

The need for data backup within an enterprise can be justified easily. However, choosing the right backup method and strategy can be a bit more challenging. There are tons of software and hardware options available, as well as even more complex procedures and policies about how to use them.

Considering this, many businesses would like to keep it simple and would fancy one of the most popular backup strategies - 3 - 2 -1.

Unlike others, the 3-2-1 backup strategy didn’t originate from any tech company. Peter Krogh, a creative photographer, formulated it.

What is the 3-2-1 Backup Strategy?

Data loss is one of the worst disasters a business can face. In fact, 60% of businesses that lose their data will shut down within six months.

In most cases, unexpected data loss is caused by a poor backup strategy, typically using traditional methods like tape backup. Nearly 50% of all tape backups fail to restore successfully.

To avoid this, you need a modern, all-inclusive method like the 3-2-1 backup strategy.

3-2-1 Backup Strategy Definition

The 3-2-1 strategy is a backup plan that requires you to have:

Three copies of your data. This means having multiple backups so if one fails, you have others to fall back on. That includes the original data and two backup copies.
Two different media types. Don't store all your backups on the same type of device. For example, you could have backups on a hard drive and a cloud storage service. This protects you from device failures.
One off-site backup. Keep at least one copy of your data stored away from your main location. This safeguards your data from fires, floods, and other disasters that could destroy your on-site backups.

How to Implement the 3-2-1 Backup Strategy

Follow these steps to implement the 1-2-3 backup strategy.

Choosing Appropriate Backup Media

The first step is to choose the right backup media. Since the 3-2-1 backup strategy requires you to work with multiple types of media, you don’t have to stick to one. Here are the most common options.

Internal Hard Drives: These are great for local backups, but be aware of limited capacity and potential failure.
External Hard Drives: They offer more capacity and portability – ideal for off-site backups.
Network Attached Storage (NAS): NAS provides centralized storage and can be accessed by multiple devices.
Cloud Storage: Cloud storage offers scalability and accessibility but can be pricey and unreliable in terms of data privacy.

Setting Up Local and Off-site Backups

The most important part of the 3-2-1 strategy is making sure you have enough copies of your data in different places. First, you need to have a local backup. This could be your main data center, where you typically store all your company data.

Next, you need to have an off-site backup to protect your data in case your primary storage location becomes vulnerable to:

Fires, floods, earthquakes, and other natural disasters
Theft and vandalism
Hardware failures, software crashes, or human error
Ransomware attacks or malware infections

In that case, you’ll still have a copy of your data in an off-site location. That can be anywhere, whether you utilize cloud storage services like Amazon S3 or opt for colocation data centers.

Selecting and Configuring Backup Software

The next step is finding the right backup software to create copies of your data. It’s the first step in implementing an effective data protection strategy. Here are the key purposes of backup software:

Automation: Backup software speeds up the file duplication process, reducing the risk of human error and ensuring consistency in backup creation.
Scheduling: It allows you to schedule backups at regular intervals, such as daily, weekly, or monthly, based on your data sensitivity and business needs.
Versioning: Many backup software solutions support versioning. That means you can retain multiple different copies of your data over time. This is particularly useful for recovering older versions of files in case of accidental deletions or corruption.
Compression: To reduce the need for extra storage, backup tools often shrink the size of backup files without compromising data integrity.
Encryption: Backup tools use encryption to protect sensitive data against unauthorized access. If they don’t have built-in encryption, integrating with third-party encryption tools is one of the best practices for the 3-2-1 backup strategy.

After you choose the right backup software for your business, it’s time to configure it. Set up your backup tool to include all critical data and backup schedules.

Scheduling Regular Backups and Automating the Process

Backups aren’t a one-and-done process. You need to back up your data regularly to make sure you always have the latest version of every document. That’s especially true if you’re using cloud storage services.

Luckily, most backup software solutions have automatic backup features. That means you can adjust the settings to automatically back up the data daily, weekly, monthly, or any customized variation.

The ideal backup frequency depends on the sensitivity of your data. For instance, if you’re dealing with personal information from customers, you must update the backup every day to ensure nothing is lost.

Your current regulatory requirements also impact your backup frequency. For example, healthcare providers under HIPAA may be required to back up patient information regularly to ensure data availability in case of an emergency.

Versioning is also a smart tactic most companies implement in their 3-2-1 strategies. That means retaining multiple copies of your data over time. If you accidentally delete the latest version, you’ll always have the one before it.

Testing Backups to Ensure Data Integrity and Accessibility

You don’t want to wait until the last moment to make sure your 3-2-1 strategy is working. Here are three steps to help you test and verify your 3-2-1 backups.

Remember to periodically test the backup tool to ensure your data is accessible and not corrupted.
Simulate data recovery scenarios by restoring files or folders from your backups. This way, you’ll know how the backup tool will perform in case of an emergency.
Use checksums or hashing algorithms to compare the original files with their backed-up versions. For example, you can create a test folder with sample files and back it up. Then, restore the files on your backup tool and compare them using a checksum tool like MD5sum or SHA256sum.

Benefits of the 3-2-1 Backup Strategy

If you already have a data backup strategy in place, you may be wondering: why should I change it? Let’s look at a few benefits of the 3-2-1 backup strategy that you won’t get with other methods.

Enhanced Data Protection and Redundancy

With the 3-2-1 strategy, you have multiple copies of your data on different devices and locations. That means you won’t need to worry about data loss in case of hardware failures, accidental deletions, or disasters in one location.

Improved Recovery Times and Minimized Downtime

In the event of a data breach, the 3-2-1 strategy allows for rapid recovery with minimal business disruption and financial losses. A study by IBM found that the average cost of a data breach in 2024 was $4.8 million, but the right backup strategy can help you avoid such expenses.

Increased Resilience Against Cyber Threats

Ransomware attacks and other breaches can lead to data corruption or deletion. With the 3-2-1 strategy, you can guarantee complete protection against such threats. That means you can easily restore your data without paying a ransom.

Compliance With Legal and Regulatory Requirements

Many industries have specific data retention and backup requirements. For instance, HIPAA mandates that healthcare organizations retain patient records for at least six years from the date of creation or when it was last in effect. Some states may require records to be kept for up to 10 years.

Meanwhile, financial institutions must comply with SEC and FINRA regulations. These laws often require firms to retain records related to transactions, communications, and customer information for at least three to seven years.

In Europe, the GDPR requires organizations to retain personal data only as long as necessary for the purposes for which it was collected. The 3-2-1 strategy helps ensure compliance with all such regulations so you can avoid legal risks and penalties.

Scalability and Adaptability to Future Needs

As your data storage needs grow, the 3-2-1 strategy can easily adapt to make room for newer files and backup frequencies. For instance, if you need to start backing up your data every day instead of every week, you can adjust those settings at no cost.

Advanced Variations: 3-2-1-1-0 and Beyond

While the 3-2-1 backup strategy is a pretty solid foundation for data protection, some organizations may need even higher levels of security. In that case, they can opt for a more advanced version of the 3-2-1 strategy: the 3-2-1-1-0 rule.

Here’s how it works.

Three copies: As in the original 1-2-3 rule, you have three copies of your data.
Two different media types: You must store your data on two different types of storage, such as hard drives and cloud storage.
One off-site backup: Keep one copy of your data stored in a remote location.
One offline/immutable copy: This is what sets the 3-2-1-1-0 rule from the 3-2-1 strategy. Keep one copy of your data that is completely offline and cannot be modified. It’s also known as an "air-gapped" backup.
Zero errors: Make sure your backup process is error-free. That means regularly testing your backups and addressing any issues as soon as you identify them.

The 3-2-1-1-0 rule is even more robust thanks to its offline/immutable copies. These backups are completely immune to ransomware attacks, as the malware cannot encrypt or delete data not connected to the network. Plus, the “zero-error” aspect of this rule helps you maintain the integrity of your data and reduce the risk of data corruption.

Cost and Resource Analysis

Before changing your data backup strategy, you must determine whether the 3-2-1 rule fits your current budget. The cost of implementing this strategy mainly depends on your choice of backup medium and software.

Disk-Based Backup

If you’ve opted for disk-based backup, you can expect these price ranges:

External hard drives: $50 for a 1TB drive to $200 for a 4TB drive.
Network Attached Storage (NAS) devices: Starts at $200 for a 2-bay model with 2TB of storage.
Disk-to-disk backup solutions: $1,000 to $10,000 or more, depending on the capacity.

Cloud-based Backup

Cloud-based backup is much more affordable. Business-grade cloud backup solutions cost between $10 and $50 per user per month, depending on storage capacity and features. When restoring data from the cloud, you may need to pay extra for bandwidth usage and data egress fees.

ROI of a 3-2-1 Backup Strategy

Keep in mind that the abovementioned prices are estimates based on the current market value of different backup mediums. The exact ROI of A 3-2-1 backup strategy depends on your initial investment and your choice of backup mediums. Some are more effective than others.

Using this strategy, you can expect ROI in the form of:

Money saved on downtime
Avoiding costly data breaches with better data security
Avoiding costly penalties with regulatory compliance
Faster and more efficient disaster recovery
No ransom paid to recover your data

Summary

The 3-2-1 backup strategy is a proven method for protecting your valuable data from loss or corruption. It’s simple yet effective, and you may make it even more robust by opting for the 3-2-1-1-0 rule. If you’re ready to implement this strategy, visit Simple Backups to explore our comprehensive backup solutions today.