Having some form of offline \ different media makes me feel a lot happier... as it stands we have D2D backup via Veeam then D2T with Backup Exec streaming the Veeam files to tape. If you have a fast enough connection (and deep enough wallet) you could replace tape with online backup but the ongoing costs were too much in comparison to one-off capital purchase for the tapes in our case.
As for the server, does look a bit on the pricey side... I'd go to Misco or similar and get them to do bid \ education pricing on the same spec and see how it comes back... if you're paying standard off the shelf prices on that quote there could be quite a difference :)
Tape is a long and distant memory.
It doesn't need to infect it as such, it could just run a rmdir over the network for all attached devices...would need to have got onto a machine with privileges to access the NAS though - in our case that would mean installing it as an admin.
For setup/migration, tape and server, that price isn't overly ridiculous to be honest.
The migration/setup could easily be £1k+, the server £1.7k and the tape £1k.
So, not really a 'run for the hills' kinda price. However, is it overkill? In particular, the hard discs, and potentially the type of backup drive (the LTO-4 can handle 800GB/1600GB compressed which is significantly higher than the disk space being installed).
An LTO-3 drive would cost around £650 compared to an LTO-4 at around £1k. SATA drives would be around £100 - £150 cheaper, each than SAS 15k drives.
How many clients is it serving?
Run RDX instead of LTO. Cheaper and no need to replace in the long run.
There are lot of suggestions/recommendations in this thread so I will avoid repeating any of them,
The E5606 is an Entry Level Low Spec server for general use with only an 8Mb cache
The server has bee mated with 3 x 15k High Performance SAS drives which provides raid 5 with no hot spare?
Only 4GB of ram which will not be of great use if you decide to lump every task that you have on it (including the Backup Exec Media Server).
If you plan on building a house make sure the foundations match the desired building!
As a file server it will suffice, for any other purposes look at using the 2.54Ghz 12Mb CPU's as these fly in comparison