My hosting company backs up customer data on our shared servers daily to a backup hard drive. Each of our shared servers has two hard drives, and does a back up during off hours. It seems to me that most hosting customers think that their host backs up their sites, but don't really know their host's policy on the subject. I still recommend customers to keep their own backups. Our backup drive does protect them in the case of a primary drive failure, but it doesn't protect them from a catastropic event that would destroy our servers, like a fire.
Back up your sites now folks!
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