I have a freshly installed SBS 2011 server that I need to configure for backup. I tried using the SBS backup configuration tool, but it didn't want to use anything but an external drive. Previously, with our W2K3 servers, I used NTBackup to back up the server to disk and then copied the backup files to a remote server on a regular basis. It doesn't appear this is possible with the built-in backup tools in SBS 2011. Am I missing something? What other options are there that won't cost an arm and a leg?
The answer is to use the Windows Server Backup admin utility from the Administrative Tools menu, rather than the one in the Small Business Server admin tool. The former allows you to specify a local volume and does not attempt to force you to use a removable storage device.
I also recently installed an SBS 2011 server and came across this same issue, in all honestly I am not a huge fab of the Windows Server Backup tools so I persuaded the company to make the small investment in ShadowProtect SBS edition.
It was about £300 an provides a great solution, it's been backing up the server since May and it has failed once due to the destination drive needing more space. I test the images every Friday afternoon using the image mounting tool and every once and a while I perform a restore to an old piece of hardware. Works an absolute treat! £300 for a license forever! It also comes with all the restore/engineer CD's!