I am considering opting for a VPS solution, with the server running Ubuntu server. I am pretty new to this, and I need to come up with a backup policy for my server data.

Initial data is likely to be about 80Mb, and I expect the data to grow at approximately 5Mb to 10 Mb a day.

Can anyone recommend:

1. A backup/restore policy (best practises for a small startup)
2. Which tools to use for backup?

Another thing that is not clear to me is - where are the files backed up to normally (in the case of remote servers). If the files are backed up to the same machine (or even to another machine but with the same host), there is potentially, a single point of failure).

How do people normally backup their server data, and is the probability of machine meltdown or the host company server farm "catching fire" so remote as not to be worth worrying about - especially for a small (read one man) startup like me?