The server team here think the same way as your boss. They moan all the time about the space needed for sql backups and the log backups in the day and say that their tape backups (once a day) of the mdf and ldf are good enough - even for business critical transactional systems such as the clocking in and out, time and attendance system which they now want to clone by virtualising the server then copying it!

Funny that when anything needs restoring it's my sql backups that get used! 😀