Offsite backup options for Hyper-v

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We're currently in the process of spec'ing an upgrade for one of our clients. I could do with some suggestions.

We currently have 12 servers, we'll be virtualising with hyper-v and consolidating.

We take backups of SQL db's to a SCSI VXA tape drive, which is on a 7 day rotation, the tape is switched everyday and taken offsite. Around 500GB worth of data. Takes around 8 hours to complete. We already keep the db's on RAID-5, but the customer requires an offsite backup.

This is all done in our local data center by their staff (n.b the staff are rather rough - in that they're smashed several of our tapes and destroyed a couple of server power buttons).

We'll most likely be using our existing CA ARCServe r15 license.

Budget is < £1k :(

Hyper-V doesn't support SCSI pass-through. So the options I see are:

SCSI-iSCSI bridge - Keep the existing VXA drive. After a brief look, this seems kind of a hack and slash option. Anyone using one?

iSCSI tape drive - Haven't managed to find one people recommend, very likely to be waaaay over budget.

Cloud backups are probably out of the question - 500GB worth of fresh data is going to take while!

Is it time to move to disk backups?

I've had a look but struggling to find something ideal. We need hot-swap, preferably permanently enclosed drives.

NAS or eSATA is unimportant as we do all the backups from a single server.

What other options are availible? Any comments?

Thanks :)
 
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