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I think Web-based backup is not only affordable, it's also safer since you are dealing large secure data centers that are far way from your physical office.
Probably the biggest concern with Web-based storage is the viability of the vendor. You don't want your service provider to go belly-up while it has your files. The good news is that the market has stabilized. Still make sure you do your do-diligence concerning the vendor's financials (pretend you are thinking of investing the company; what questions would you ask.)
You should also asked about security (from whether they use biometric measures to how your data will managed and isolated from other customers to who will have access to your files).
And, of course, compare pricing on a cost-per-megabyte basis -- not only with other Web-based service providers but compare it to what it would cost you to do it internally.
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