Thanks Martin - very detailed answer!
It's good to know I have that flexibility available (fortunately the client's DB only contains text and it'll be a long time before it even reaches 100MB let alone 1GB .. so while I've not sat down to calculate the space requirements the 5GB is likely to be ample to begin with ... I would probably want 6 monthly backups though).
I'll be putting the proposal to my client next week ... hopefully this will result in me purchasing a semi-dedicated server with the backup option ... watch this space!!!
Thanks again
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