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The term "Backup" means the methods and processes involved to copy computer data (system data as well as application data) to media other than the ones where the data originally live (disk, tape, optical, cloud). "Restore" in turn means the methods and processes involved in data recovery, i. e., bringing back copied computer data to their original location. Backup/Restore primarily serves as a means of protection against data loss, be it due to disaster, corruption or sabotage. It can also be used for recovering data from an earlier point in time and even for cloning machines or applications. There is a wide variety of backup/restore software available, from expensive commercial products to free or open source tools.
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I would recommend compelting the Snapshots when the server is not busy.
A snapshot is NOT a backup of a VM; that is a gross misconception. Here are some notes that I took from a VMWare seminar that better explains what a snapshot is:
A snap shot is a way to preserve a point in time when the VM was running OK before making changes. A snapshot is NOT a way to get a static copy of a VM before making changes. When you take a snapshot of a VM what happens is that a delta file gets created and the original VMDK file gets converted to a Read-Only file. There is an active link between the original VMDK file and the new delta file. Anything that gets written to the VM actually gets written to the delta file. The correct way to use a snapshot is when you want to make some change to a VM like adding a new app or a patch; something that might damage the guest OS. After you apply the patch or make the change and it’s stable, you should really go into snapshot manager and delete the snapshot which will commit the changes to the original VM, delete the snap, and make the VMDK file RW. The official stance is that you really shouldn’t have more than one snap at a time and that you should not leave them out there for long periods of time. Adding more snaps and leaving them there a long time degrades the performance of the VM. If the patch or whatever goes badly or for some reason you need to get back to the original unmodified VM, that’s possible as well.
I highly recommend reading these 2 articles on snaps:
Understanding Snapshots - http://kb.vmware.com/kb/1015180
Snaphot Best Practices - http://kb.vmware.com/kb/1025279