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If all you care is money, then it's even less on hertzner at 48/year. But the reason I recommended Borgbase is because it's a bit more known and more trustworthy. $8 a year is a very small difference, sure it will be more than that because, like you said, you won't use the full TB on B2, but still I don't think it'll get that different. However there are some advantages to using a Borg based solution:
And the most important part, migrating from one to the other is simple, just changing config, so you can start with Borgbase, and in a year buy a minicomputer to leave on your parents house and having all of the config changes needed in seconds. Whereas migrating away from B2 will involve a secondary tool. Personally I think that this flexibility is worth way more than those $8/year.
Also Borg has deduplication, versioning and cryptography, I think B2 has all of that but I'm not entirely sure, because it's my understanding that they duplicate the entire file when some changes happen so you might end up paying lots more for it.
As for the full system backup I still think it's not worth it, how do you plan on restoring it? You would probably have to plug a liveusb and perform the steps there, which would involve formating your disks properly, connect to the remote server and get your data, chroot into it and install a bootloader. It just seems easier to install the OS and run a script, even if you could shave off 5 minutes if everything worked correctly in the other way and you were very fast doing stuff.
Also your system is constantly changing files, which means more opportunities for files to get corrupted (a similar reason why backing up the folder of a database is a worse idea than backing um a dump of it), and some files are infinite, e.g.
/dev/zero
or/dev/urandom
, so you would need to be VERY careful around what to backup.At the end of the day I don't think it's worth it, how long do you think it takes you to install Linux on a machine? Because I would guess around 20 min, restoring your 1TB backup will certainly take much longer than that (probably a couple of hours) and if you have the system up you can get critical stuff that doesn't require the full backup early. Another reason why Borg is a good idea, you can have a small critical stuff backup to restore in seconds, and another repository for the stuff that takes longer. So Immich might take a while to come back, but authentik and Caddy can be up in seconds. Again, I'm sure B2 can also do this, but probably not as intuitively.