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Is there a way to use windows backup in Windows 2008 to store to an external FTP server?

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Not by itself. You can automate uploading the file to an FTP server by calling ftp.exe and giving it the -s switch with a file which includes the commands to upload the backup file.

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Normally Windows Backup does not have direct FTP support. Novell has a now inactive application/driver by the name of Netdrive which will connect to a FTP server and present a drive letter to that connection.

The FTP drive letter can then be used as a backup location for Windows Backup.

Netdrive itself is a little bit hard to find on the Novell site and its licensing is not necessarily clear these days.

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