A service of online backup solution is cost effective for number of small business. The online backup service has been adopted by small business. It is often called as managed backup service, remote service and online backup providers. This type of services is provided users with a system for the storage as well as backup of computer files. Typically, the online backup service can built around a client software program. They collected number of programs like transfers that data to the remote backup service providers servers, compresses and encrypts. There are many online markets now offered different feature sets include types of encryption and service levels. The typical features of online backup is included online access to files, differential data compression, synchronization, network backup, file-by-file restore and bandwidth usage. There are different kind of categories available in the online backup services such as data security, data backup, data storage, data retention and data protection. Backup mechanism service can help in both data backup online as well as saving files. It also comes in more affordable rate. Other storage service is offered GB space to save specific amount of data online. Another type of external backup devices is keeping the data for a long time.