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Backing up to an FTP directory is an easy way to store your backups on an off-site server. That means that if something happens to your web server, your backups are still safe. This video shows how to configure an FTP directory for your backups.
You can save the backup file directly to any FTP server. If you'd prefer your backups be stored off-site, this is a good option. Setup is pretty straightforward, all you need is the host, port, path to the backup directory, username and password.