back up solution

Please understand, BACKUP is INSURANCE.  NO ONE likes to pay for it and you NEVER want to use it - which makes many people think it's a waste of money.

You need to look at how important the data is and determine what needs backup off site and what can be done locally and how reliable your staff is.  The CHEAPEST solution (but these days, I'd argue the "stupidest") is to assign an employee to change an external hard drive and use JUST windows backup.  It's stupid because you're asking a HUMAN to perform the backups - if they are sick and miss a day or week, what then?  What if they get hit by a bus?  

Bottom line, we don't even know who you're using or how much data you have - $200 may be a GREAT price.  Or you may be being over charged.  And for online solutions, there are DOZENS of providers - each has their own twist to how they do things so it's not always apples to apples comparison.

It sounds that you have pay the backup on each months, why don't you engage the backup vendor to propose the backup solution for your company. At least you can cut the cost for each month with one time solution

I follow completely about going over your existing contracted amount, and your online backup provider asking for more, what I'm not sure about is if they also provide the server that you are backing up, and the local storage for backup as well, could you please confirm.

There are lots of online backup providers, but if you are tied into one supplier for everything, then you might have to move everything to change one part of it..

So your supplier provides a "backup server" ?

To suggest a suitable alternative, can you provide some more details about your other servers, such as what operating system (such as Windows 2003, Windows 2008, Linux, BSD etc) and what applications (just file sharing, Microsoft SQL 2005, Microsoft SQL 2008, MySQL etc) they are running. Obviously you need several hundred GB of storage, but can you also confirm what backup retention you need.

So far I know you have Exchange, but not the version, presumably you also have at least one domain controller, but you might be running Small Business Server.

Lastly what bandwidth is your internet connection ? and are you in the US ?

If you move to managing the backups "in house" will have an initial capex spend, but your monthly opex should go down significantly. Depending on exactly what you need, you should have a positive ROI in less than 12 months.