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Not sure if you'll get an AWS response on this on here. Raise it with your account manager if you need an official answer.
Regarding snapshots, we users have no access to the mechanism but AFAICT it keeps track of changed blocks and ensure that it has at least one copy of each populated block for the time period specified. Consult the docs for details of what a block is: http://docs.aws.amazon.com/redshift/latest/dg/c_columnar_storage_disk_mem_mgmnt.html
Re full backups retained for 2 years, the snapshot mechanism doesn't offer this. You'd have to UNLOAD
every table to S3 and use a lifecycle to have the bucket move objects to Glacier automatically after, say, 7 days. This sounds like a huge pain in the ass to me.
As an alternative we retain all of the incoming load data on S3 and design our ETL so that it can be reloaded as needed. Our lifecycle puts the objects into Infrequent Access after 7 days and Glacier after 90 days.
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