Most websites use databases to store the majority of their information. Therefore, backing up your databases is much more important than backing up other server files. Most other files can be replaced, but the information in your database is often unique and irreplaceable.
Where you store your database backups is very important and can ultimately decide the fate of your server, should something go wrong with your websites. Storing your backups on your the same server is not a good idea, and storing them on your home computer is not much better. The following are three better storage options:
1) Local backup device – Whether it is located in your office or in your data center, a backup device serves no other purpose. It should stay connected to the network and provide plenty of storage space.
2) Separate dedicated server – If you have the money and infrastructure, you can always use a second server either on-site or remotely colocated to provide some redundancy.
3) Cloud-based storage – Many cloud service providers now offer storage-as-a-service (STaaS). You do not have to manage the server at all, only provide the necessary contact information for you to backup your data.
Any one of these options is better than having no backup at all, and you can save yourself a great deal of trouble by keep your websites backed up.