Cloud backup is one type of online backup, a way by which a particular data can be stored or backed up to a proprietary server or a network issued publically to a server that was placed off-site. The host of the server isn't the organization itself, it is the third-party service provider which will charge some ransom amount from its customer and the fees charged for using cloud backup depends on the amount of storage of data, bandwidth or the number of users using the service.

In the company, the off-site server can be owned by the enterprise but the accounting strategy which involves the cost of its IT services, software, and hardware (chargeback) would be the same.