How to Choose a Managed Backup Provider: 27 Audit-Ready Questions for CPA Firms

When a tax season deadline looms, downtime isn’t just inconvenient, it’s catastrophic.

For accounting firms, a few hours of lost access to client data can cascade into missed filings, compliance violations, reputational damage, and even regulatory penalties.

Add to that the growing pressure from the FTC Safeguards Rule, IRS Publication 4557, and client expectations around confidentiality, and the choice of a managed backup provider becomes one of the most high-stakes decisions a CPA firm can make.

The problem is that most providers sound the same on the surface. Everyone claims “99.9% uptime,” “ransomware protection,” and “easy restores.”

But when you dig deeper, the difference between marketing promises and audit-ready evidence is night and day. A provider that fails to prove restores, log compliance, or deliver on RPO/RTO commitments can put your entire practice at risk when it matters most.

This guide is designed to eliminate that uncertainty. It distills the due diligence process into a 27-question audit-ready checklist tailored specifically for CPA and tax firms. Each question is structured to help you press beyond buzzwords:

• Why it matters for accounting firms.
• What a credible answer should look like.
• The exact evidence you should demand.

By working through these questions, you’ll be equipped to write stronger RFPs, evaluate vendors with confidence, and protect your firm against both downtime and compliance blind spots. Whether you’re comparing proposals for the first time or replacing an underperforming vendor, this framework ensures you won’t miss critical details.

Choosing the right managed backup provider isn’t about checking a box, it’s about safeguarding your revenue, reputation, and regulatory standing. This guide gives you the clarity and rigor to do exactly that, with a lens shaped by the realities of accounting firms that “live in fear” of downtime during peak season. For many firms, it will be the difference between a smooth tax season and a disastrous one.

Foundation: Why Backups Aren’t Just IT Insurance

Too many accounting firms still think of backups as a technical checkbox—something you set and forget until disaster strikes. In reality, modern managed backup services are a compliance safeguard, a business continuity tool, and a risk management strategy all in one. To evaluate providers properly, you need to understand the fundamentals that govern backup performance and compliance.

RPO vs RTO: Your Recovery Metrics

Two terms dominate any serious backup discussion:

• Recovery Point Objective (RPO): How much data your firm can afford to lose. For example, an RPO of four hours means you may lose up to four hours of work if systems fail.
• Recovery Time Objective (RTO): How long it takes to restore operations after an outage. If your RTO is two hours, the provider must have you fully back online in that time.

For CPA firms, where peak season hours equal billable revenue, RPO and RTO are not abstract numbers—they directly translate into missed deadlines, lost fees, and even IRS penalty exposure. Providers must document these metrics in writing and back them up with restore logs, not just promises.

Backup vs Disaster Recovery vs High Availability

It’s easy to blur these terms, but the distinctions matter:

• Backup ensures copies of data exist and can be restored.
• Disaster Recovery (DR) goes further—providing the ability to recover full systems (servers, apps, networks) in a crisis.
• High Availability (HA) keeps systems continuously online, often through clustering or redundancy, minimizing downtime altogether.

For most firms, backups alone aren’t enough. You need a backup and disaster recovery (BCDR) plan that blends all three, ensuring you can restore not just files but also critical applications like QuickBooks Desktop or tax prep software when it matters most. (See Verito’s backup and disaster recovery guide for a deeper breakdown.)

Immutable Backups: Your Ransomware Insurance

Ransomware is designed to encrypt both your live data and any accessible backups. That’s why immutable backups (copies that cannot be altered or deleted for a set retention period) are non-negotiable. Without immutability, a provider’s backup claim is worthless the moment malware spreads.

The 3-2-1-1-0 Backup Rule

The old “3-2-1” backup standard has evolved. For CPA firms, the gold standard today is:

• 3 copies of data
• 2 media types (cloud + local, for example)
• 1 offsite copy
• 1 copy that’s air-gapped or immutable
• 0 errors verified through regular restore tests

This framework ensures redundancy, geographic separation, ransomware resilience, and verifiable integrity—all critical when your compliance obligations demand more than “we had backups.”

Offsite and Air-Gapped Copies

Not all clouds are created equal. A second copy sitting in the same data center is not a true safeguard. Providers should support air-gapped backups (physically or logically isolated) or replicate data to an independent offsite location. For firms audited under SOC 2, IRS 4557, or the FTC Safeguards Rule, this level of separation often becomes the line between passing or failing.

Restore Proof > Marketing Claims

The single most important takeaway: if a provider cannot prove restores with evidence, their backup system does not protect you. Quarterly restore tests with logs, screenshots, or audit-ready reports are the only way to ensure you’re not gambling your busiest season on blind trust.

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The 27-Question Audit Checklist

Architecture & Data Handling

1. What certifications do your data centers carry?

• Why it matters (for CPA firms): Your clients’ tax and financial data are some of the most regulated forms of PII. Storing it in uncertified facilities exposes your firm to compliance violations.
• What “good” looks like: SOC 2 Type II certification as a baseline, with ISO 27001 or equivalent as a bonus. Data centers should have physical security, redundancy, and access controls documented.
• Evidence you should see: SOC 2 audit reports, compliance certificates, or a direct link to the provider’s SOC 2 data centers.

2. How do you encrypt data in transit and at rest?

• Why it matters: Accounting firms are subject to FTC Safeguards and IRS 4557, which require strong encryption for sensitive client data. Without it, you risk interception or theft.
• What “good” looks like: AES-256 encryption at rest, TLS 1.2+ in transit, with keys stored securely (ideally in HSMs).
• Evidence you should see: Technical whitepapers, encryption policy documentation, compliance attestations.

3. Do you isolate customer environments to reduce multi-tenant risks?

• Why it matters: In multi-tenant clouds, one client’s breach can compromise another. CPA firms can’t afford shared vulnerabilities.
• What “good” looks like: Dedicated private environments or strict logical separation with proven isolation controls.
• Evidence you should see: Architecture diagrams, written policies, or confirmation that each client’s data is fully segregated.

4. Are backups immutable against ransomware?

• Why it matters: Ransomware can encrypt not just production files but also backups if they’re writable. Without immutability, “last night’s backup” may be useless.
• What “good” looks like: Backups that cannot be altered or deleted for a set retention period. Providers should explicitly mention ransomware-proof architecture.
• Evidence you should see: Product documentation, immutability settings screenshots, or third-party validation of retention locks.

5. Do you support offsite and air-gapped copies?

• Why it matters: A single-site outage or breach should never wipe out all backups. Regulators often expect geographic separation and offline resilience.
• What “good” looks like: Providers offering replication to offsite facilities or air-gapped systems where malware cannot spread.
• Evidence you should see: Clear documentation of offsite storage locations, replication intervals, and proof of separation.

Backup Scope & Coverage

6. Can you back up Microsoft 365 workloads (Exchange, SharePoint, Teams)?

• Why it matters (for CPA firms): Many firms mistakenly assume Microsoft backs up their emails, Teams chats, or SharePoint files. In reality, Microsoft provides availability, not long-term backup. Losing a year of client correspondence during an IRS audit could be catastrophic.
• What “good” looks like: Full coverage of Exchange Online, SharePoint, OneDrive, and Teams — with granular restore options (per message, per file, per site). Retention policies should extend well beyond Microsoft’s default 30–90 days.
• Evidence you should see: Proof of successful message/file restores, retention policy documentation, and screenshots of backup portals showing item-level recovery.

7. Do you provide Google Workspace backup?

• Why it matters: Many smaller firms run Gmail and Google Drive instead of Microsoft. If a staff member accidentally deletes client records, Google’s trash folder won’t save you after 30 days.
• What “good” looks like: Automated backup of Gmail, Google Drive, Docs, Sheets, and shared drives. Providers should allow one-click restore of specific emails or documents without overwriting current data.
• Evidence you should see: Demonstrations of recovery (e.g., restoring a deleted email), written scope of coverage, and audit logs confirming Google Workspace backups.

8. How do you protect remote staff endpoints?

• Why it matters: With hybrid and remote work now standard, many CPA firms rely on laptops and home-office devices. If one is stolen or corrupted during tax season, data can vanish unless endpoints are backed up.
• What “good” looks like: Endpoint backup agents that automatically capture user files and sync them to secure storage. Solutions should cover Windows, Mac, and ideally mobile devices. Encryption and remote wipe capabilities are a plus.
• Evidence you should see: Endpoint backup deployment guides, proof of remote restore workflows, and monitoring dashboards that track device backup status.

9. Can you handle niche accounting/tax software datasets?

• Why it matters: Beyond email and documents, CPA firms rely heavily on QuickBooks Desktop, Lacerte, UltraTax, Drake, CCH Axcess, and other specialized apps. These databases are complex, and generic backup tools often fail to capture them reliably.
• What “good” looks like: Support for application-consistent backups of accounting databases, including multi-user QuickBooks and large tax archives. Providers should demonstrate successful restores of industry-specific workloads.
• Evidence you should see: Restore reports showing QuickBooks files and tax databases recovered, testimonials from firms using similar apps, and confirmation of compatibility with your exact software suite.

RPO, RTO & Restore Proof

10. What are your documented RPO and RTO commitments?

• Why it matters (for CPA firms): Losing four hours of client data (RPO) or being offline for two days (RTO) can devastate a firm during tax season. These numbers directly impact billable hours and compliance deadlines.
• What “good” looks like: RPOs measured in minutes or low hours, RTOs guaranteed in hours — not days. Providers should differentiate between file restores and full system recovery.
• Evidence you should see: SLA documentation with RPO/RTO clearly defined, along with historic performance metrics and client references confirming they’re met in practice.

11. Do you conduct quarterly restore tests and provide logs?

• Why it matters: Backups are only as good as the last successful restore. Without testing, you won’t know if databases or systems are truly recoverable.
• What “good” looks like: Providers that schedule quarterly (or more frequent) restore tests for each client, not just generic infrastructure. Logs should detail what was restored, how long it took, and whether objectives were met.
• Evidence you should see: Restore test reports, screenshots of successful restores, and audit logs with time stamps proving testing frequency.

12. What evidence can you provide for successful restores?

• Why it matters: Regulators and auditors don’t accept “trust us” claims. CPA firms need defensible proof to show compliance with IRS 4557 and the FTC Safeguards Rule.
• What “good” looks like: Detailed restore logs that include file hashes, time taken, and confirmation of data integrity. Bonus if providers supply audit-ready reports formatted for regulatory review.
• Evidence you should see: Example restore logs, auditor-ready templates, or a demo showing how reports are generated.

13. Do you support Disaster Recovery as a Service (DRaaS)?

• Why it matters: In a total site outage (e.g., hurricane, fire, or ransomware event), you need more than file recovery. You need entire servers and applications spun up quickly in the cloud.
• What “good” looks like: DRaaS with predefined recovery runbooks that cover tax software, accounting databases, and critical infrastructure. Providers should commit to failover timelines aligned with your RTO.
• Evidence you should see: Documentation of DRaaS architecture, recovery runbooks tailored for accounting applications, and case studies of actual failover events.

Security Controls

14. Is multi-factor authentication (MFA) enforced for all backup access?

• Why it matters (for CPA firms): Backup consoles are prime ransomware targets. If compromised, attackers can delete or encrypt backups. Without MFA, one stolen password could take down your last line of defense.
• What “good” looks like: Mandatory MFA (not optional) for all admin and user logins. Ideally, providers support modern authentication methods like FIDO2 keys or app-based tokens.
• Evidence you should see: Security policy documentation, screenshots of enforced MFA settings, and compliance attestations confirming MFA adoption.

15. Do you integrate with EDR/XDR for ransomware detection?

• Why it matters: Ransomware often lies dormant before triggering, and basic antivirus won’t catch it. Endpoint Detection and Response (EDR) or Extended Detection and Response (XDR) tools can flag anomalies early, protecting backups from being compromised.
• What “good” looks like: Integration with EDR/XDR solutions that monitor endpoints and servers, with alerts tied into the backup system. Providers should be able to auto-isolate infected systems to prevent spread.
• Evidence you should see: Incident response documentation, examples of past ransomware detection, or integration diagrams showing how backup and EDR/XDR communicate.

16. Is there 24/7 monitoring and escalation for security incidents?

• Why it matters: CPA firms can’t afford to wait until Monday morning to learn that backups failed Friday night. Real-time monitoring ensures threats or failures are contained before they escalate into disasters.
• What “good” looks like: 24/7 Security Operations Center (SOC) with human oversight, automated alerting, and clear escalation paths. Support should prioritize accounting firms during tax season.
• Evidence you should see: Monitoring dashboards, SOC staffing policies, and documented escalation procedures. A link to managed security services should show how ongoing protection is delivered.

Compliance & Regulatory Alignment

17. How do your backups align with the FTC Safeguards Rule?

• Why it matters (for CPA firms): The FTC Safeguards Rule requires firms to protect client financial data with specific controls. Backups that aren’t encrypted, monitored, or tested could put you in violation.
• What “good” looks like: Providers that map their controls (encryption, monitoring, restore testing) directly to Safeguards Rule requirements. They should also provide reporting you can hand to auditors.
• Evidence you should see: Compliance mapping documents, policy references, and provider knowledge of the FTC Safeguards Rule.

18. Do your backups integrate into our Written Information Security Plan (WISP)?

• Why it matters: IRS Publication 4557 and FTC requirements expect firms to maintain a WISP. If backups aren’t documented within it, regulators may see them as a gap.
• What “good” looks like: Providers that supply WISP-ready documentation of backup processes and help you integrate them into your firm’s policies.
• Evidence you should see: Sample WISP entries, provider guidance, and references to your Written Information Security Plan (WISP).

19. Do you provide a WISP template as part of onboarding?

• Why it matters: Many small CPA firms struggle to draft WISPs from scratch. Without one, even the best backups won’t satisfy regulators.
• What “good” looks like: A ready-to-use, customizable WISP template that includes backup and recovery language. Providers should go beyond compliance checklists and actually supply usable documentation.
• Evidence you should see: A free WISP template offered as part of onboarding or compliance support packages.

20. Do your systems support IRS Publication 4557 compliance?

• Why it matters: IRS 4557 lays out specific requirements for safeguarding taxpayer data. Regulators expect firms to demonstrate backup and recovery measures aligned to those standards.
• What “good” looks like: Providers that explicitly state how their backup services satisfy 4557 requirements—encryption, access control, retention, and recovery testing.
• Evidence you should see: Documentation cross-referencing backup processes with IRS 4557 guidelines.

21. Are restore tests logged in an audit-ready format?

• Why it matters: During an audit, regulators or clients will want to see proof of actual recovery—not just policies. Logs that show recovery success are as important as the backups themselves.
• What “good” looks like: Providers that generate detailed restore logs including timestamps, systems restored, test outcomes, and compliance annotations.
• Evidence you should see: Example reports formatted for IRS/FTC reviews, restore log exports, and compliance-ready templates.

Support & Operations

22. What is your support SLA for backup failures?

• Why it matters (for CPA firms): If a backup fails the night before a filing deadline, waiting days for support could be devastating. You need guarantees that failures are resolved fast.
• What “good” looks like: Written SLAs with defined response and resolution times (e.g., response in <30 minutes, resolution within hours). Priority support during peak tax season is a must.
• Evidence you should see: SLA agreements, historical metrics on average response times, and references from other accounting firms.

23. Who handles escalation—frontline agents or engineers?

• Why it matters: Many providers route issues through generic call centers with limited technical knowledge. For CPA firms, downtime on QuickBooks or Lacerte requires experts who understand the applications, not scripted responses.
• What “good” looks like: Direct escalation to certified engineers who know accounting/tax software. Ideally, a named technical account manager (TAM) or team lead is responsible for your firm.
• Evidence you should see: Escalation workflow charts, support org structure, and case studies showing engineer-level intervention. A good point to connect with managed IT services for firms that need outsourced escalation.

24. Do you offer 24/7 live support during peak season?

• Why it matters: CPA firms operate extended hours in tax season. A provider who only staffs 9–5 support could leave you stranded during late-night or weekend crunch times.
• What “good” looks like: 24/7/365 support with live engineers, not voicemail callbacks. Support should scale in intensity during peak January–April demand.
• Evidence you should see: Staffing schedules, support access channels (chat, phone, email), and proof of extended coverage during tax deadlines.

25. Is there a clear chain of accountability for escalations?

• Why it matters: In many failures, the biggest issue isn’t technology—it’s finger-pointing. CPA firms need assurance that someone is accountable when backups fail.
• What “good” looks like: A dedicated account manager or escalation lead who takes ownership. Providers should document how incidents are tracked, escalated, and closed.
• Evidence you should see: Named contacts in contracts, escalation matrix charts, and post-incident reports that show accountability measures.

Pricing & Contracting

26. How is pricing structured—per GB, per user, or per workload?

• Why it matters (for CPA firms): Backup costs can spiral if pricing is tied to raw storage or unpredictable data growth. Firms need clarity to budget during peak and off-peak seasons.
• What “good” looks like: Transparent, predictable pricing that aligns with how CPA firms actually work—typically per user or per protected workload (e.g., QuickBooks server, Microsoft 365 tenant). Tiered storage or hidden retrieval fees should be avoided.
• Evidence you should see: Line-item quotes, billing policy documentation, and client references confirming stable pricing over time.

27. Do you guarantee no hidden fees or rate spikes over time?

• Why it matters: Some providers lure firms in with low first-year rates, only to increase costs once renewal comes up. For small firms with tight margins, surprise increases can be painful.
• What “good” looks like: Month-to-month or multi-year contracts with transparent terms, no surprise renewal hikes, and clear language on data retrieval costs.
• Evidence you should see: Contracts with rate-lock clauses, client testimonials confirming consistent billing, and sample invoices showing no unexplained surcharges.

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Scoring & Comparing Providers

A checklist is powerful only if it translates into a decision framework. Otherwise, vendors will overwhelm you with jargon and cherry-picked features. The goal is not just to collect answers, it’s to score providers against objective criteria that reflect your firm’s risk tolerance and compliance needs.

Step 1: Group Questions into Categories

Break down the 27 questions into six categories:

1. Architecture & Data Handling (Q1–5)
2. Backup Scope & Coverage (Q6–9)
3. RPO, RTO & Restore Proof (Q10–13)
4. Security Controls (Q14–16)
5. Compliance & Regulatory Alignment (Q17–21)
6. Support, Pricing & Accountability (Q22–27)

This way, you’re comparing providers not just on features, but on the domains that actually impact CPA firms: compliance readiness, restore reliability, and cost predictability.

Step 2: Apply a Scoring Rubric

For each question, assign a simple scoring system:

• Yes, with evidence = 2 points
• Yes, but weak/no evidence = 1 point
• No / Not applicable = 0 points

For critical items (like immutability, RPO/RTO, compliance logs), you may double-weight the score.

Step 3: Create an Evaluation Matrix

Here’s what a simplified comparison might look like:

Category	Weight	Provider A	Provider B	Verito*
Architecture & Data Handling	20%	6/10	8/10	10/10
Scope & Coverage	15%	5/8	7/8	8/8
RPO/RTO & Restore Proof	20%	4/8	5/8	8/8
Security Controls	15%	3/6	4/6	6/6
Compliance & Regulatory	20%	6/10	7/10	10/10
Support & Pricing	10%	3/6	5/6	6/6
Total	100%	27/48	36/48	48/48

*Verito example: SOC 2 Type II certified data centers, audit-ready restore logs, specialized CPA/tax software coverage, 99.999% uptime guarantees, and transparent month-to-month contracts.

Step 4: Validate with Evidence

Even if a provider scores well on paper, always request:

• Restore logs (not just SLA promises)
• Compliance mapping to FTC/IRS rules
• Reference calls with CPA firms

This extra step ensures that your chosen managed backup provider is not only “good on paper” but has proven experience protecting firms like yours.

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Compliance & Evidence Wrap-Up

For CPA and tax firms, backups are more than an IT function. They’re a compliance obligation. Regulators don’t accept verbal assurances; they expect documented proof that your client data is secured, recoverable, and aligned to federal and industry standards.

Why Evidence Matters

• FTC Safeguards Rule: Requires firms to implement and monitor safeguards for client financial data. If your provider can’t show how their backups meet these requirements, you’re exposed to fines and investigations. (Learn more about the FTC Safeguards Rule).
• IRS Publication 4557: Explicitly calls out the need to protect taxpayer data with written security policies, encryption, and recoverability standards. Backups that aren’t documented in your firm’s Written Information Security Plan (WISP) will not meet this threshold.
• SOC 2 Standards: Independent audits prove your provider maintains strict controls for security, availability, and confidentiality. Always ask for documentation of SOC 2 data centers where your data is stored.

The Role of WISP Integration

Every CPA firm is expected to maintain a living Written Information Security Plan. Backups should not be siloed outside of this document. A strong provider will give you:

• Backup policies mapped into your WISP.
• Templates you can adapt — like this free WISP template.
• Audit-ready restore logs that you can present to regulators or clients without scrambling.

Restore Proof as Your Audit Safety Net

No matter how many certifications or policies a provider advertises, restore proof is the single non-negotiable element. If they can’t produce logs showing when backups were last tested, how long recovery took, and whether integrity was verified, your firm is operating blind.

Security Beyond Backups

Backups also intersect with overall IT and cybersecurity. Firms should evaluate how backups align with:

• Endpoint protection and monitoring through managed security services.
• Broader IT resilience and escalation paths through managed IT services.
• Documented policies to reduce human error, phishing risks, and endpoint compromise — covered in security best practices for tax & accounting.

Choosing a managed backup provider isn’t about ticking a technical checkbox. It’s about building defensible evidence that your firm can survive outages, ransomware, or audits without disruption. When regulators or clients ask for proof, the provider you select should be able to hand you logs, certifications, and WISP-ready documentation, not marketing brochures.

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Glossary & Further Resources

Even seasoned IT managers in accounting firms find that backup terminology gets used inconsistently by vendors. Here’s a quick glossary to clarify the terms you’ll encounter when evaluating a managed backup provider.

Recovery Point Objective (RPO)

The maximum amount of data (in time) you can afford to lose after a failure. For CPA firms, an RPO of more than a few hours can mean redoing entire days of client work.

Recovery Time Objective (RTO)

The maximum acceptable time it should take to restore operations after an outage. Firms should demand documented RTO guarantees in hours, not days.

Immutable Backups

Backups that cannot be changed or deleted for a defined period. Critical for ransomware protection. Without immutability, attackers can encrypt or wipe backups along with production data.

3-2-1-1-0 Backup Rule

Modern best practice: three copies of data, two media types, one offsite copy, one copy that’s air-gapped or immutable, and zero errors verified through testing.

Disaster Recovery as a Service (DRaaS)

A managed service that goes beyond file restores, spinning up entire servers and applications in the cloud after a disaster. Essential for firms that can’t afford prolonged downtime during tax season.

Backup and Disaster Recovery (BCDR)

An integrated approach combining backups with disaster recovery planning. It ensures not only that data exists, but that full systems can be restored. (See the backup and disaster recovery guide for details.)

Backup as a Service (BaaS)

A managed offering where a provider handles all aspects of your backup infrastructure — hardware, software, monitoring, and testing. Firms evaluating providers should review this BaaS guide to understand the differences between do-it-yourself and fully managed approaches.

Evidence Logs

Audit-ready reports showing proof of successful restores, timestamps, and data integrity checks. Regulators and clients often require this documentation during compliance reviews.

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Conclusion

The difference between a backup that looks good on paper and one that protects your firm in practice comes down to evidence. CPA and tax firms can’t rely on marketing promises, they need provable restores, compliance documentation, and transparent accountability.

The 27 questions in this guide are designed to move you past vendor buzzwords and into audit-ready due diligence. By pressing every provider on why it matters, what good looks like, and what evidence they can show, you’ll separate those who merely sell storage from those who actually safeguard your firm’s revenue, reputation, and compliance standing.

A true partner won’t hesitate to show restore logs, compliance mappings, and WISP-ready documentation. They’ll give you predictable contracts and put engineers, not call centers, behind your support. They’ll treat backup not as an IT checkbox but as a lifeline for your practice — one that ensures client trust and regulatory confidence even under peak-season pressure.

If you take away one thing, let it be this: without restore proof, you don’t have a backup.

When you’re ready to evaluate or switch providers, use this checklist as your RFP blueprint. And remember, if a vendor can’t meet these standards, they’re not a fit for the future of your firm. For more on what to expect from a modern provider, explore Verito’s managed backup services.

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FAQs on Choosing a Managed Backup Provider