GitHub user ingox added a comment to the discussion: What does Snapshots, 
Backups, and Incremental Snapshots mean in CloudStack

@daviftorres there are pro and con for the different snapshot and backup 
options. Find them here:

**Instance snapshot:**
- is stored on the primary storage
- is no backup; just to freeze a certain state if you do changes 
- is using qcow2 functionality
- does snapshot of the entire VM including all disks
- can include memory as well
- can have differential snapshots
**Volume snapshot:**
- is copied to the secondary storage
- is individual to each volume
- can be differential
- you won't get a consistent snapshot across all volumes of a VM for the same 
point in time
- can be copied to other zones automatically
- can be restored in other zones without the need of template now
**NAS backup:**
- does backup the entire VM to an external location
- can be restored to other zones with access to this backup storage
- does full backup only at the moment - differential backup is hopefully to 
come soon

I hopefully have covered most of the important criteria to be considered. 

GitHub link: 
https://github.com/apache/cloudstack/discussions/12475#discussioncomment-15568853

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