I am testing 2008R2 file server, and part of it, is that I need to create backup of the file and folders in it (mainly dev GIT repository - changes daily)
I wanted to use Backup Services - however, when selecting to save to a remote folder (our backup server) there will only 1 version of the backup source kept
I don't feel comfortable with that. I can always go and use scripts (our current solution) or even any other rsync or similar solution.
My question: does anyone knows if this is how the feature is intended to be used? Does anyone have experience with fine-tuning this, so daily backups will NOT override?
Yes, use a script to copy the backup off to another location (on the same server) every day. (Scheduled task, script that runs in the background and constantly monitors the backup location, or something else if you have a different preference.) That way it doesn't matter if the Backup Services overwrite the backup daily or not, because you have a copy of each day's backups somewhere it won't overwrite.
That said, I'd really recommend a proper backup solution. Windows native backups are more of a pain than I'm willing to tolerate.
Windows Server Backup uses VSS shadow copies to store versions, therefore it's its native restriction to not be able to have more than 1 backup at a time on the network share. As an alternate method, use a volume on your backup server attached as an iSCSI target to the server running WSBackup for your backup destination. Should you need it elsewhere, just re-attach it to another server, run a restore in there, then attach it back.
But yes, it'll be better if you use a specialized back-up solution that won't restrict you in any way, be it use only local attached storage to have more than one backup copy or something else.