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Tape Backup Overruns DAT72

I back up Small Business Server to tape daily and we've reached the point where data volumes are exceeding the tape capacity.  I run our system but am not expert, and would appreciate a few pointers as to what to do. In particular
1. The tape is supposed to be 72GB (tapes are HPDAT72 C8010A), yet our data is around 37GB. So why does it fail when it should only be half fulll?
2. At the moment we backup up the whole of the C:\ drive. Is there anything we could probably safety exclude from the backup ?
3. If we were to upgrade our backup storage capacity, what are the best options ? Are there tapes with greater capacity ? what about hard drives (what about need for removal offsite ??) Online backups (is this practical for 37 Gbytes ?)    
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Is a DAT160 tape compatible with a DAT72 tape drive, so I just buy some new DAT160 tapes and its problem solved ?  
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ASKER

or i need a new tape drive ?

Please find your answers bellow:

1)  Your data are not compressed which software you are using to backup your data? On maximum compression the tape will support 73 Gb of data.
Reference: http://h10010.www1.hp.com/wwpc/us/en/en/WF06a/12169-304612-3446234-3446234-3446234-316234.html

2) You can exclude the whole Windows folder and program files folder provided you do not have any database applications like MS SQL and while taking back up you are taking current system state. If you have some other partition like d: or e: dives ask your users to keep sensitive data inside of them. Or you can create a share folder to keep such data.

3) Before suggesting a suitable backup device for your organization I must know at what growth in terns of percentage you are having like 1 GB per day 10% per day.

Yes certainly HP have 400 / 200 or 400 / 800 GB Ultrium tape option and so on but before you decide you must thing of a cost effective solution.

Well hard drives are not industry proven solution as they can crash any time.

If you use a 200 / 400 Gb tape you can easily take it with you while going home.

To use DAT160 you need a DAT160 drive.
I thought that DAT technology was designed to be backwards compatible ? So shouldn't a DAT160 tape work in a DAT72 drive?
It is BACKWARDS compatible - ie, a DAT72 will work in DAT160, but not the other way around.

To help get the extra data onto the newer generation tapes, they've doubled the tape width from 4mm to 8mm. Earlier generation drives can't deal with this, but DAT160 has a dual loading mechanism that can handle either.