Srini,
She does use a total server backup. This is just referring to the modular backup by Amazing Charts.
You must be doing something wrong or you are confusing storage space with memory. (sorry, I know that is doubtful).
But, even if you are backing up 10GBs of data, and you do it overnight, it will require memory, but once done, the backup shuts off and the memory is back. It is just like opening five websites, three Word Documents and 10 Excels. You will use a lot of memory as they will be running in RAM, but when you close them; you get that memory back.