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Is it better to build a separate NAS box or to buy a router that has usb storage capability? The data would simply be backups and not accessed very much.
Many routers with USB capability running Samba or FTP etc simply do not have the processing power to have decent file transfer speeds. At most you'll probably get about 2-4 MB/s. A seperate NAS box with a decent processor will be your best bet, but you'll be spending a pretty penny for those. Around $400 for a decent NAS device which will get you up to 65-70 MB/s.