External hard drives are now very inexpensive and support very high data transfer rates as long as your computer supports USB 2.0. This means that data backup occurs much quicker than it would if you were using a tape backup drive or (the extremely slow) DVD writeable drives. I would highly recommend external hard drives against anything else available in the market.
Online, 1 terabyte hard drives can be had for less than $300 now. A new generation of external drives that connect directly to the network (also costing less than $300 for a terabyte) are now available. These drives support a 1 Gigabit per second data transfer rate if connected to a 1 Gigabit network switch. Most network switches sold prior to now have a data transfer rate of only 100 Megabits per second and the backup will be slightly slower when the latter drives are connected to them.
Backup software is now built into Windows Vista versions (except Home Basic). If you are using Windows XP or need more sophisticated and feature-laden software, Norton's backup products are available at a reasonable cost (check online for current prices).
Paramjit "Perry" Kahai, Ph.D.
CEO
NEO IT & Security, LLC
pkahai@neoits.com
330.322.0830