Remote backup has some disadvantages:
- Depending on the available network bandwidth, the restoration of data can be slow. Because data is stored offsite, the data must be recovered either via the Internet or via tape or disk shipped from the online backup service provider.
- Some backup service providers have no guarantee that stored data will be kept private - for example, from employees. As such, most recommend that files be encrypted before storing or automating this process.
- It is possible that a remote backup service provider could go out of business or be purchased, which may affect the accessibility of one's data or the cost to continue using the service.
- If encryption password is lost, no more data recovery will be possible. However with managed services this should not be a problem.
- Residential broadband services often have monthly limits that preclude large backups. They are also usually asymmetric; the user-to-network link regularly used to store backups is much slower than the network-to-user link used only when data is restored.