An inexpensive storage system is disclosed along with methods of managing such a system. In one preferred embodiment, the system includes a high performance high reliability storage medium configured for initial storage of data, a low performance high reliability storage medium configured for backup of data initially stored on the high performance high reliability storage medium, and a high performance low reliability storage medium, configured to receive data transferred from the high performance high reliability storage medium, after the data has been backed up on the low performance high reliability storage medium. This significantly reduces the cost of the system without substantially comprising performance. Reliability is likewise maintained owing to the high reliability backup.