A good backup strategy should include a full server backup at least weekly and typically involves incremental or differential backups daily. (I usually like differentials, myself. Safer)
To make life easy on yourself it's best to minimize tape swapping. I always like to aim for one week's worth of backups without changing tapes. Think about this when choosing a tape drive or library and be sure to plan for growth - Tapes don't grow!
Here's an example. Let's say your server has 100 GB of storage used. Each day, a diff shows that 10 GB changes. (Yes, that's high, but you never know what's going to happen...). If that's so, you'll need to backup each night...
Sunday: Full backup - 100 GB
Monday: 10 GB (monday's changed files)
Tuesday: 20 GB (Mon/Tues changed files)
Wednesday: 30 GB (Mon/Tues/Wed changed files)
Thursday: 40 GB (You get the idea)
Friday: 50 GB
Saturday: 60 GB
So, you need 100+10+20+30+40+50+60 or 310 GB.
If you just did incremental backups each night (and hope you don't ever have to do a major restore, which can be ugly) you'd just need 160 GB.
Factor in some growth and figure out what you need.
Last bit of advice: Don't ever, ever, EVER be cheap or take any chances with your backups. I've seen entire companies fail when their servers crash and can't be restored. Chances are, if your server fails and you don't have a good backup you'll get fired. I've had consultant friends who have, during routine maintenance, nuked entire servers of our customers. Fortunately, we were careful about their backups so have always been able to restore them, but it's not worth the chance.
Best of luck!
- G