Backup Encryption 101: Guidelines & Best Practices

The definition of an encrypted backup

Encryption by itself is not that difficult of a term – it is a method of data safeguarding, done by reordering or scrambling data so that only authorized parties can return it into its original, normal state. The main purpose of encryption is that the original information in the encrypted data is effectively hidden or inaccessible. In this context, encrypting data backups is one of the easiest safeguards against cyber crimes – but it is not 100% safe, either.

Encryption safeguards data by transforming it from its plain text format (readable text) into ciphertext (an unreadable format) using sophisticated mathematical algorithms and encryption keys. The intention is that data decryption would only be available for users who are supposed to have access to it in the first place.

There are plenty of examples where data encryption has been implemented on a large scale. Some of these examples only utilized encryption only after a massive data breach already happened. Retailer Target had the personal information of over 70 million of its users compromized to a hacker attack back in 2013. It had to pay a massive fee as part of a security breach settlement. Tightening data security (with the addition of encryption) was also a part of this settlement. The Bank of America, on the other hand, implemented a clear encryption framework a while ago because of financial compliance requirements (in this case, PCI DSS compliance, which is discussed later in the article).

The most popular encryption algorithm right now is the AES – Advanced Encryption Standard. It was originally developed to replace DES, or Data Encryption Standard (since it became far too vulnerable as time passed). There are three main key lengths that AES can work with – 256-bit, 192-bit, and 128-bit. AES-256 is widely considered to be the most secure encryption method out there, combining both resistance to cyberattacks and encryption/decryption speed.

Not all encryption is beneficial for regular users – in fact, it can be used for harmful and illegal actions. One of the most common cyber attack types nowadays is ransomware (68.42% of all cyber attacks in 2022), which uses the same encryption techniques to modify unprotected files and demand ransom from their owners in exchange for data decryption.

There is also a clear separation between encryption and hashing – with the former being a one-sided, irreversible process of transforming information into an illegible sequence of symbols. While it is true that plenty of regular business users tend to confuse these terms with each other, the big difference between the two is also simple enough to be remembered with ease.

The use cases of these two technologies also tend to differ to a certain degree. Hashing is mostly used in the context of blockchains, integrity checks, and password validation processes, while encryption is a much more widespread term used in many forms and situations, from data security to cybercriminal activities.

Encrypted backup benefits

Backup encryption can provide a plethora of advantages to its users, with the most notable examples being highlighted in the list below.

• Tampering and corruption protection for improved data security.
• Protection against blackmail and identity theft.
• General data protection capability.
• Regulatory compliance improvements.
• The inability to access the information without the decryption key, even if the storage device itself was stolen or compromised.

Types of encryption

The lack of data encryption as a security measure for your backups is practically unacceptable at this point and can bring a lot of issues to the table if left unresolved. Yet, the topic of encryption as a whole can also be moderately challenging for new users, with different encryption methods and other complicated terms.

Choosing one encryption method and type as a primary option for your business can also be somewhat challenging since you have to consider:

• Company’s data types
• Infrastructure requirements
• Technical capabilities of employees
• Budget limitations
• Security requirements
• Scalability options, and so on.

Backup encryption can be performed with a number of different approaches. For starters, there are two primary encryption types to keep in mind – asymmetric and symmetric.

Asymmetric encryption

An asymmetric encryption method is based upon two asymmetric encryption keys – which is where the name of this approach comes from. This key pair includes one public key and one private key that are mathematically connected to one another.

The purpose of a public key is to encrypt information and nothing else, which is why it can be revealed to the public with ease. The private key, on the other hand, is the only way to decrypt information encrypted with an associated encryption key – greatly limiting the number of users that are capable of decrypting information in these situations.

A basic real-life mailbox is the most obvious analogy for such an encryption type. The mailbox can receive information from anyone in the form of letters being dropped in it, but these letters can be acquired only by someone with the correct mailbox key, which is usually only one or two people.

Symmetric encryption

Symmetric key algorithms represent a class of cryptographic algorithms that utilize the same key for both decrypting ciphertext (unreadable, encrypted data) and encrypting plaintext (readable data). In simpler terms, they rely on a shared secret key that acts as both the lock and the key, enabling both encryption and decryption of information.

Any kind of real-life lock would be a practical example of symmetric encryption. The acts of locking and unlocking the lock are both done using the same exact key – and the information that is protected with symmetric encryption can be decrypted using the same key it was encrypted with.

Encryption implementation methods also change quite drastically depending on the state of the data in question. Following a similar idea to the one before, we can present two categories of encryption – at rest and mid transit.

Encryption at Rest

Since information is the most valuable resource of any company, it has to be sufficiently protected during its inactive storage state. Encryption at rest is made to solve this exact issue – providing a sophisticated approach to data security to ensure its integrity. “At rest” is a state of the information when it is not transferred to another location.

A common analogy for this kind of encryption approach can be taken from the literal act of safeguarding – putting valuables in a safe under a lock. As soon as the valuables are in a locked safe that only you know the code of – the valuables cannot be stolen in any way.

The main point of encryption at rest is to act as a line of defense against threats that have managed to breach the overall company’s security in some way. It is a very useful approach, considering how pointless it makes the act of data stealing or publication if it cannot be decrypted without a proper encryption key.

Encryption at Rest is also how Google Cloud Platform calls its iteration of Server-Side Encryption as a feature. While the nature of this service is identical with the “encryption at rest” as a term, it does make the matter of distinguishing between the two slightly confusing.

Other companies also have similar technologies, although their names are distinctly different – Server-Side Encryption (feature) for Microsoft and Storage Service Encryption for Amazon. At the same time, it would be fair to mention that SSE as a feature is primarily applied to cloud storage providers, which does make its potential target range when compared with “encryption at rest” as a feature that can also work with on-premise environments.

Encryption mid-Transit

Mid-transit encryption is often seen as an antithesis to encryption at rest since this method is supposed to safeguard information during its transportation from one storage area to another.

If you send a real-life valuable of some sort using a locked briefcase, it would be close to how mid-transit encryption operates, protecting the integrity and value of information stored inside. All the existing encryption mid-transit methods offer a secure way of safeguarding data during its exporting process from one location to another (disk to cloud, cloud to NAS, tape to VM, and many other examples).

E2EE, or End-to-End Encryption

End-to-end encryption, or E2EE, is an advanced security tool that assists with data protection during data transfer from one user to another. The purpose of E2EE is to prevent anyone but the data recipient from accessing information that has been sent since the sender’s device encrypts the message using a unique encryption key that only the recipient would know.

The existence of a single encryption key available to two people only dramatically improves the security of the data transfer process, creating a practically impenetrable shield around information that has been sent. No application service providers, hackers, or ISPs have access to the information in question – and the same applies to the platform that offers the encryption services, as well.

The security of E2EE is difficult to doubt, which would explain its popularity in multiple messengers and other applications such as Facebook, Whatsapp, Zoom, etc. At the same time, this kind of complete lack of access does raise a number of legitimate questions, mostly from the authorities that would not be able to perform investigations if the messaging was performed with this kind of encryption. It is a relatively new feature that many security solutions try to introduce as soon as possible, considering how secure it can be.

E2EE is a peculiar encryption type that is difficult to find a real-life analogy for. Let’s say that you have a special kind of lock or diary that comes with two keys. The first key is for locking the box, while the second is for unlocking it. You have the first key, while your friend has the second one. This is as close as we can get to imagining how E2EE might work in the real world.

Encryption keys and key management services

Encryption keys have been mentioned before in this article, so their exact definition should not be difficult to understand. It is a data piece used in cryptography to perform a decryption operation, an encryption operation, or both. The capabilities of an encryption key depend entirely on the encryption type selected – there would be only one encryption key for a symmetric encryption type, while the asymmetric type always has a key pair (public and private keys).

An encryption key is as strong as it is long – longer keys are more difficult to decrypt, but also require more processing power to perform decryption/encryption operation. Due to their extremely sensitive nature, it is only natural that there would be a dedicated system created specifically for encryption key storage – and there are plenty of such services.

Key-management environments are a digital analog of a real-life keychain. Keeping them safe and secure is paramount for having access to different places, be it your home, your car, your mailbox, etc. As for the key management service, it can be compared with a key vault or a secure ring key that enhances the security of the keychain without affecting its usefulness.

Key Management Services (such as Google Cloud Key Management, Azure Key Vault, AWS Key Management Service, etc.) offer an easy way to manage and safeguard encryption/decryption keys. It is not uncommon for these key management services to validate encryption keys using the FIPS 140-2 Cryptographic Module Validation Program and employ hardware security modules (HSM) for better key management for its clients.

Key management services can offer a variety of benefits, including:

• Compliance Assurance: Tamper-evident records facilitate passing compliance audits with ease.
• Unbreakable Defense: Makes unauthorized data access extremely difficult, requiring intruders to compromise both the key and the data location.
• Key Rotation: Regularly rotating keys ensure attackers have limited time to exploit any vulnerabilities.
• Multi-layered Security: Stealing information would require compromising the solution provider, cloud service provider, and the customer, significantly raising the difficulty level.

Legal requirements and frameworks that require encryption

The total number of various legal requirements and/or frameworks that require data encryption in some way is extremely high, which is why we are only going to showcase a small selection of the most commonly known regulations:

• GDPR, or General Data Protection Regulation.

Article 32(1)(a) highlights the value of adopting specific security measures in order to protect information that is considered sensitive. Encryption is one of many data security methods that can be considered in this case, depending on the level of risk, the scope of the processing, and so on.

• HIPAA, or Health Insurance Portability and Accountability Act.

45 CFR § 164.312(a)(2)(iv) highlights the number of security requirements that fall under this Act’s coverage. The primary point of this is to enforce encryption and decryption rule sets with a transparent mechanism on all of the information that can be considered ePHI (electronic protected health information). This is not the only requirement, though, since more can be located in the HIPAA Security Rule document, and the definition of ePHI is also up to debate in certain use cases.

• PCI DSS, or Payment Card Industry Data Security Standard.

Requirement 3.4 facilitates the necessity to render all Primary Account Numbers unreadable when stored – including logs, backup media, portable digital media, and more. This requirement is very demanding when it comes to security measures, with strong cryptography, robust key management practices, as well as inder tokens/pads, one-way hashing, truncation, and other measures.

BYOK encryption type

Bring Your Own Key (BYOK) is a highly secure cloud computing model that makes it possible for end users to work with their own encryption software and key management solutions. It is a stark contrast with traditional cloud service methods that usually rely on their own in-house encryption methods and key storages.

The most notable advantages of BYOK implementation are:

• BYOK grants users complete ownership and control over their encryption keys, ensuring data sovereignty and compliance with specific regulations and requirements.
• Utilizing your own trusted encryption software and keys adds another layer of protection, significantly increasing the difficulty of unauthorized access.
• Having complete control of your encryption keys serves as a demonstration of enhanced security, which might be necessary to remain compliant with certain regulations on sensitive data.

Most of the implementation steps for BYOK are straightforward and obvious:

1. Make sure that the encryption service provider or cloud solution you are using supports BYOK. Some of the most common examples of such services are Google Cloud KMS, Azure Key Vault, and AWS KMS.
2. Generate your encryption keys in a secure fashion, be it via a dedicated generation process or using an HSM (hardware security module).
3. The encryption keys should then be uploaded to a service provider’s KMS. Don’t forget to configure policies for access control and key rotation.
4. The uploaded keys can now be used to encrypt information in different states to ensure complete security of your sensitive data.
5. Encryption key usage should be constantly monitored and analyzed to look for anomalies or mismanagement uses; it is a necessity for security and compliance purposes.

BYOK allows users to choose the encryption software that best integrates with their existing infrastructure, eliminating compatibility challenges and fostering greater flexibility. It is an interesting option for companies that do not wish to rely on cloud services to store their encryption keys, but it is not without its own issues, so it is highly recommended to research the topic before committing to implementing one such system.

Encryption implementation strategy

While the actual steps for implementing encryption into your environment would differ drastically from one situation to another, we can offer a number of clear and actionable steps that can be followed in most situations to get the most out of your encryption setup:

Perform a data identification process

Data sensitivity is a key factor that can be used to differentiate information into certain groups. This kind of identification and sorting needs to be done as the first proper step in implementing any kind of encryption strategy. Being able to identify the location of information that has a lot more value than the rest increases the chances of covering all of your sensitive information with an encryption strategy, be it financial data, intellectual property, personal identifiable information (PII), or any other data that needs protection for sensitivity or compliance reasons.

Choose the preferred encryption approach.

The choice between different encryption approaches depends completely on the nature of the business. There is no pressure to select only one method, either – the most competent solutions combine multiple encryption types depending on the sensitivity of the information. That way, asymmetric encryption can be used to exchange sensitive information in a secure fashion, while symmetric encryption would be at its best with large data volumes.

Review the key management practices you want to implement

A flexible and powerful Key Management Service is highly recommended to manage existing keys and generate new ones when necessary. Common examples of such services are Azure Key Vault and AWS KMS.

Ensure the thoroughness of the encryption process

Encryption should be applied both in transit and at rest, with no exceptions. AES encryption is a common example of a strategy for at-rest protection, while TLS/SSL is preferable for information in transit.

Perform regular encryption protocol audits

Similar to most of the existing technological environments, encryption protocols, and standards tend to upgrade and evolve as time goes on. As such, reviewing and updating your encryption strategies using scheduled audits is the best way to perform these kinds of updates on a regular basis with some sort of consistency and schedule.

Common encryption errors

Backup encryption strategies can be somewhat challenging to set up since there are plenty of different elements that can be involved in one such strategy. In the list below, we present some of the most common errors that happen before or during backup encryption processes, as well as recommendations on how to solve them.

• Weak or outdated encryption algorithms lead to an increased number of potential weaknesses and a lower security level overall. Industry-standard encryption algorithms such as AES-256 are the solution.
• Improper key management strategies drastically increase the probability of an encryption key being compromised in some way. A Key Management Service is a recommendation for all companies that encrypt information on a regular basis.
• The lack of backup encryption opens up opportunities for these backups to be deleted or otherwise compromised by ransomware or a cybercriminal’s actions. Strong encryption for information at rest and mid-transit is highly recommended for all corporate environments.
• Compliance oversight opens up the potential for multiple ramifications, be it massive fines, legal action, or the inability to operate in a specific region. All compliance and regulatory standards, such as HIPAA, GDPR, and CCPA, should be followed and reviewed on a regular basis.
• The lack of encryption key rotation leaves these keys vulnerable to being stolen and used in a criminal action of sorts. Automated key rotation policies can be set up in most modern KMS solutions.
• Proper user education is just as important as security measures since the uneducated user is far more likely not to comply with some sort of requirement or procedure and leave the system open for a cyber attack. Regular training sessions on the topic of encryption and other security practices should solve this issue.

Bacula Enterprise and data encryption

Within the competitive landscape of backup and recovery solutions, Bacula Enterprise stands tall as an unparalleled champion of data security. This unrivaled security prowess stems from a multifaceted approach encompassing its architecture, feature set, adaptable deployment options, and extensive customization potential. Further bolstering its security posture is the fact that Bacula’s core components run on the inherently more secure Linux operating system.

Security is especially important for Bacula Systems, a core value that is clearly reflected in its product Bacula Enterprise – with its dedicated approach to data protection. Bacula transcends the notion of mere “good enough” security. Features like two-factor authentication, role-based access and Time-based One-Time Passwords (TOTP) are not just optional add-ons – they are fundamental building blocks of Bacula’s security architecture, representing just some of the bare minimum basics any organization should expect from a backup solution.

Just some other security-oriented features of Bacula Enterprise include integrated antivirus software, several customizable policies for encryption of backup data, granular user control, granular data restriction, MFA support, LDAP access controls, file-level encryption, signed encryption, communication encryption, data poisoning detection, advanced security status reporting, data corruption monitoring, SIEM integration, and many others.

Bacula and backup encryption

When it comes to encryption-centric capabilities, it is important to note that Bacula’s encryption options are highly customizable. Bacula can also offer plenty of options to work with, including:

• Tape encryption support.
• Automatic TLS encryption.
• Support for four different cipher variations – AES256, AES192, AES128, and blowfish.
• Two different digest algorithms – SHA256 and SHA1.

Bacula allows for data to be encrypted and digitally signed before it is sent to its Storage Daemon. These signatures are validated upon restoration, and and and every single mismatch is reported to the administrator. Critically important is that neither the Storage Daemon nor the Director have access to unencrypted file contents during this process.

Bacula Enterprise’s PKI, or Public Key Infrastructure, is composed of x509 public certificates and RSA private keys. It allows for the generation of private keys for every File Daemon – as well as a number of Master Keys that can decipher any of the encrypted backups in the system (these are also generated as a pair – a public key and a private key).

It is heavily recommended that both File Daemon keys and Master keys are stored off-site, as far away from the original storage location as possible. All of the encryption/decryption algorithms mentioned above are also exposed using an OpenSSL-agnostic API that is completely reusable. Its volume format is DER-encoded ASN.1, with the Cryptographic Message Syntax from RFC 3852 being used as a baseline.

Bacula can also store encryption/decryption keys using two different file formats – .CERT and .PEM. The former can only store a single public key with the x509 certificate, it is mostly used for storing a single specific encryption key. The latter is much more complex – it is the default OpenSSL storage format for public keys, private keys, and certificates, and it can store multiple keys at the same time – a great option for asymmetric key generation where there is a key pair to be generated in the first place (public + private).

Encryption capabilities in different backup software

Bacula’s encryption capabilities are highly customizable and can scale upwards for large enterprises and other environment types. It provides advanced backup capabilities, extensive scheduling, and other advantages.

Now, let’s see how Bacula handles itself against several other examples of backup environments with encryption capabilities:

• Veeam Backup & Replication supports secure communication via TLS, as well as AES-256 for backups at rest.
  • It specializes in working with virtual environments and has a somewhat user-friendly interface.
  • Most of the enterprise-grade capabilities are hidden behind an exorbitant price tag.
• Acronis Cyber Protect supports secure communication with SSL/TLS for data in transit and AES-256 encryption for data at rest.
  • The software focuses a lot on security features, in general, and can work with hybrid cloud environments.
  • Tends to be demanding when it comes to hardware resources during peak hours.
• Commvault provides TLS for data in transit and AES-256 for backups at rest.
  • It can offer strong analytical and reporting capabilities, along with a comprehensive data management feature set.
  • Setting up the solution in question tends to be difficult and time-consuming.

When compared with most backup solutions, Bacula can offer more flexibility, more customization options, and a lower TCO. On the other hand, the compatibility with existing infrastructure should be determined on a case-by-case basis, and the software’s learning curve is at least moderately steep, with many different tools and feature sets to work with. It is notable that Bacula has a key advantage over othe rbackup vendors when it comes to the question of security: its unique architecture, which has the ability to stop ransomware attacks since an attacked storage device does not have the ability to control Bacula, even though it is backed up. Furthermore, Bacula’s modularity allows it to be architected the way an individual organization prefers, and that suits its own security approach. For this reason, Bacula is relied on by the largest security organizations in the West.

Bacula’s commitment to extensive encryption capabilities was also the primary reason why it was chosen as a solution to back up NASA’s IBM HPSS environments. SSAI, a NASA Langley contractor, was looking for a backup solution that could work with HPSS out of the box without vendor development. The lack of a capacity-based licensing model, multi-user access, and encryption levels compliant with FIPS (Federal Information Processing Standards) were noted as the primary reasons why Bacula was chosen.

Dependency between elements of a backup solution’s infrastructure and encryption security

The chosen backup solution’s architecture plays a substantial role in encryption management processes for the entire environment. In our example, we are going to use a typical backup software structure with a control server, a media server, a catalog or database, and endpoint servers.

Control server

Control servers are directly responsible for the proper scheduling and management of backup tasks. It is not uncommon for encryption settings to be handled at the control server for data at rest and mid-transit. If the centralized encryption key management is centered on this environment, then the security of such a server has a direct correlation with the security of the entire environment.

Media server

Backup data is one of the most noteworthy types of information stored in media servers. Information can also be encrypted at this stage, making sure that backup files and other information are encrypted and have the appropriate security level. If the media server is hardware-based, it can improve the total encryption speed but also offers a lot less control over encryption key management tasks. It is also a much less flexible option than any software-based encryption method, especially if we are comparing them with off-the-shelf hardware with encryption support.

Database or catalog

In catalog-based environments, encryption is an essential step for proper security since the unusual nature of the catalogs compared with traditional data storage approaches makes it possible for attackers to infer certain information from file names alone, even if the data itself is completely encrypted.

Client devices (endpoint server)

Encryption at endpoints is also possible as an additional security level, ensuring that information is protected before it leaves that specific endpoint. The existence of source-side encryption dramatically reduces the risk of data being intercepted when traveling to and from the endpoint, but it also tends to introduce a slight overhead on the server in question.

The two existing types of backup solutions differ significantly from each other. Hardware backup appliances have pre-configured encryption settings and can rarely offer sufficient flexibility over encryption algorithms and key management, but they are extremely easy to deploy. Software-based backups, on the other hand, are much more flexible in terms of both key management and encryption, but they can be more challenging to set up and manage.

The future of backup encryption

The ongoing process of innovation based on the need to stay ahead of the development of ransomware solutions and other cybercriminal strategies is the primary drive behind innovation for backup encryption. Encryption as a process is constantly evolving, offering better and more resilient protection for backed-up data, and its potential is only going to keep growing from now on.

The most promising advancements in this industry that are sure to change it in the near future are:

• AI and ML, both of which are currently among the most popular elements in the technological environment. Machine learning algorithms would be able to assist with routine task optimization in the encryption department while also optimizing encryption key management processes. Artificial intelligence, on the other hand, would become more and more effective at detecting potential threats and anomalies in the company’s environment.
• User-centric encryption solutions are guaranteed to become more popular than they are now, with a lot of freedom when it comes to defining access permissions, monitoring suspicious activity, and managing encryption keys.
• Quantum computers have been a massive threat looming over the entire encryption space for several years now, with quantum-resistant algorithms being developed at an amazing pace, with CRYSTALS-KYBER and FALCON being some of the more known examples of such algorithms that already exist.
• Decentralization is going to become more popular as an unconventional security measure, offering more resiliency than most traditional security approaches. Decentralization is sure to make the search for valuable information a lot more problematic, and the introduction of the “least privilege” principles and the zero-trust security approach is sure to make the life of cyber criminals that much more challenging.
• Backup encryption integration into different aspects of the data transfer and storage processes is going to improve the existing security situation while also streamlining data management workflows, removing the necessity for manual intervention and practically eliminating the possibility of human error.

Conclusion

A lot of modern cybercriminals have learned to target backups in an attempt to damage companies’ capabilities to recover from data breaches for better chances of their demands being met. As such, the importance of backup security is at its highest level now, even though it was already a priority for the sake of disaster recovery and business continuity.

Backup encryption is one of the most fundamental security practices that can dramatically reduce the possibility of unwarranted data access. The point of backup encryption is to transform information into an unreadable format that cannot be broken through with most traditional measures, offering an excellent level of security. Encryption as an industry is also developing on a regular basis, with some solutions offering E2EE encryption already – an advanced encryption type with an even higher level of protection, even if it is difficult to use on large data volumes.

Commercial, military, and even government entities recognize backup encryption as a cornerstone of any data security system. However, implementing such a system in a correct manner can be moderately challenging without outside help. Luckily, there are many third-party solutions that can dramatically simplify this process.

One such solution is Bacula Enterprise, a versatile backup and recovery platform with extensive encryption capabilities and an especially high level of security qualities, compared to other backup vendors. It supports many different storage types and is even suitable to work in the harshest situations possible without losing its high level of protection against ransomware, data corruption, and other types of data issues.

Frequently Asked Questions

Can quantum computers pose a threat to existing backup encryption methods?

Quantum computers are far from being common in 2024, but their potential is already well-known – with the ability to perform complex calculations significantly faster than any other classical computer ever could. Since the majority of modern encryption methods rely on large number factoring, simply picking the correct password is an extremely long process for these computers.

Quantum computers, on the other hand, have the ability to break most existing encryption measures in a short time frame, and the concern about these computers being capable of such feats has been around for several years now. The development and standardization process of quantum-resistant encryption algorithms is in full swing, making it likely that the solution will be ready by the time quantum computers become more normalized and less expensive to produce.

Is it possible to restore encrypted backups if the encryption key was lost?

The encrypted data becomes unrecoverable in most cases if the encryption key is lost or stolen. There are some backup solutions that offer different key recovery methods, such as key escrow services, but all of these issues can be the cause of vulnerabilities, which is why they should be used with caution.

Does encryption affect the performance of large-scale backups?

Since both encryption and decryption processes add computational overhead to the company’s hardware, it definitely affects the overall performance of a system to a certain degree. Such an effect is at its most noticeable when used in large-scale environments with significant backup volume sizes.

The usage of more complex encryption algorithms, such as AES-256, also takes its toll on the hardware. It is possible to mitigate these issues to a certain degree by introducing hardware encryption accelerators or optimizing encryption tasks to run at the same time as other backup processes, but both methods should be used with caution.

Is software-based encryption or hardware-based backup encryption better for large-scale business environments?

As mentioned before, there are both hardware and software encryption methods that could be used to encrypt backups and other data. Both methods differ from each other significantly and can even be used in tandem, although it is not a common approach for a number of reasons.

Hardware-based encryption completely removes the toll encryption and decryption processes take on the company’s infrastructure, offering better performance for the entire system and a higher level of security due to the fact that encryption keys rarely have to leave the hardware in question. At the same time, a hardware-based approach to encryption is often expensive even by large-scale company standards, and scaling with such solutions quickly starts draining even more money due to the necessity to purchase more hardware units.

Software-based encryption, on the other hand, is much less expensive in comparison and is good for companies that grow at a fast pace. This approach is not as effective in terms of security, though, and the performance impact of the encryption-decryption processes can result in a significant performance hit for the entire infrastructure.

How are the compression and deduplication features affected by the backup encryption?

Since encryption is often associated with compression, there is usually no need to compress the encrypted information even further since it is already considered “optimized.” Additionally, the reliance on deduplication to find duplicate data blocks would be completely paralyzed by encryption’s ability to turn actionable information into unrecognizable data pieces, making it far more difficult to find patterns and save storage space.

Both conflicts can be avoided to a certain degree, be it by encrypting information after compressing/deduplicating it or by using specialized encryption algorithms that the compression/deduplication software can work with, but both methods require additional setup and investment in order to set up properly.