One thing to also consider if whether or not you have offsite requirements for tape rotations. If you do, you will be doing the back-ups on-site and having to use a company like Iron Mountain to do off-site archiving. One thing we did, at an old company I worked for, was fedex a locked box to a different office for a week and that office would send us their tapes. We would take their box and hold it for a week and fedex it back. That made it so that we could restore from systems that were on our network from a different location. Both of these have costs from them.
I am neutral on the outsourced vs. in-house. The outsourced makes sense to me since you can restore from anywhere; regardless where you have to restore. If your building burns to the ground, it makes sense to have storage on standby to restore at a different location.
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