We plan to incorporate Log Shipping for basic disaster recovery with reporting needs. Server A Source Database will log ship to Server B database. We will conduct log shipping every four hours.

Original plan, source backup location will be in Server A Harddrive backup folder. Backups will copy to Server B Harddrive destination folder.

However after reading two MS articles below,

Are the two bold statements saying the same thing or different?

(1) Should source backup folder not be located in Server A Harddrive folder? (I can make it accessible to Server B as needed.)

(2) If so, why should I save source backups on separate server host computer? What benefit will this serve?

(3) Do I need to copy log backups in Server B Hard drive folder? Why not keep in separate server host computer, as they recommended to have consistent philosophy?

About Log Shipping "The primary server instance runs the backup job to back up the transaction log on the primary database. This server instance then places the log backup into a primary log-backup file, which it sends to the backup folder. In this figure, the backup folder is on a shared directory—the backup share. Each of the three secondary server instances runs its own copy job to copy the primary log-backup file to its own local destination folder."

Database Mirroring and Log Shipping During a log shipping session, backup jobs on the primary database create log backups in a backup folder. From there, the backups are copied by the copy jobs of the secondary servers. For the backup jobs and copy jobs to succeed, they must have access to the log shipping backup folder. To maximize availability of the primary server, we recommend that you establish the backup folder in a shared backup location on a separate host computer. Ensure that all the log shipping servers, including the mirror/primary server, can access the shared backup location (known as a backup share).

closed as unclear what you're asking by hot2use, Marco, mustaccio, LowlyDBA, Philᵀᴹ Jun 22 '18 at 11:26

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Recommendations are accurate. Reason 1 being never keep you backups on your database server or disk. Just good practice to separate them in case of disaster. Ideally you want you backups on different hardware as well, or even different location/data center. Approach it this way, if disaster struck, would you be able to recover? if not, what was your point of failure, server, disk, infrastructure.

The scenario you reference to on MS page explains multiple copy and restore jobs to multiple secondary locations. Copying to each secondary and restore keeps unique history on the jobs for that instance. As MS states "The primary and secondary server instances send their own history and status to the monitor server instance."