Backups are an important aspect of web hosting. At Localnode, we've carefully considered different backup solutions - and combined some to better provide peace of mind.
RAID in itself isn't viable. RAID only protects from disk failures. Many hosts think RAID is sufficient and do not have any backup solution - so when something inevitably goes wrong - they lose all their data.
R1SoftWith R1Soft, you get continuous data protection, along with this there's the cPanel plugin allowing you restore individual files - and also allowing you to download any of these files directly. We have 4 different backups each day. All of these backups are retained for 7 days. These backups are off-site, in Orlando.
Daily ImagesAt 1 AM AEST, our server is imaged. This backup is retained for 1 day and is kept on-site, in Florida. The image is not kept on our servers. It's kept separate.
Amazon S3Every day, and every month, we back up to Amazon S3 using cPanel's in-built backup tool. This is done at about 2 AM AEST. Due to our fast network uplinks, these backups are done in mere minutes. Any of these backups is retained for 3 months. However, until cPanel allows for a better tool - these backups can only be restored on request.
Further reading: R1Soft's website.
Article on R1Soft at Wikipedia.