Here is a follow-up posting to the on-line storage idea. If you liked the idea and need some justification points, this article may be very helpful. This is a vendor white paper, but that does not mean it does not contain valid information -- you just don't get the counterpoints.
Top 10 Reasons Why Online Backup is Replacing Tape, from LiveVault - White Papers, Webcasts and Case: "Your most important asset - your corporate data - is far too valuable to entrust to cumbersome tape processes, unreliable backup media, and painstakingly slow recoveries. Small and medium-sized businesses (SMBs) are rapidly turning to online backup and recovery to displace older, manual, less reliable tape backup. In fact, a staggering 76.5% of IT professionals plan to change the way they do backup over the next 18 months. "