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  1. RAID1 is a must for me but it has failed too.

    You normally do incremental backups and those should cost you next to nothing as the amount of data is relatively small. I create them in a backup directory and mirror them to a backup space with a daily cron task. The files are really small. I do full dumps of the sql databases so if those are big then this might not work well.

    You could very well mirror them to your homeserver (especially if you run some kind of Linux/Unix flavour) but backup space in general is quite cheap. You could even think about using a service like Dropbox that will store you a few gigabytes for free.

    Dedicated servers are quite cheap in Germany (see http://www.hetzner.de/en/hosting/produkte_rootserver/x2/for an example) but this seems to be a phenomena of Germany and France only.

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