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Backup is the process of copying objects (programs, system values and/or
data) to an outside media (tape, CD, disk) in a format that has the
capability to be returned (restored) to the system in exactly the same
image.
Restore is the process of returning objects, data or both to a system to
reflect a previous image.
The difference should be self-explanatory.
The importance of back up would be based entirely on reliability and/or
risk. Some systems require little or no backup. Some require constant
backup.
The importance of restore falls under the same risks as backup, except that
the restore adds time and recovery levels to the risk equations.
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