The simple recovery model minimizes administrative overhead for the transaction log, because the transaction log is not backed up. The simple recovery model risks significant work-loss exposure if the database is damaged. Data is recoverable only to the most recent backup of the lost data. Therefore, under the simple recovery model, the backup intervals should be short enough to prevent the loss of significant amounts of data. However, the intervals should be long enough to keep the backup overhead from affecting production work. Including differential backups in the backup strategy can help reduce the overhead.
Generally, for a user database, the simple recovery model is useful for test and development databases or for databases containing mostly read-only data, such as a data warehouse. The simple recovery model is inappropriate for production systems where loss of recent changes is unacceptable. In such cases, we recommend using the full recovery model.
For more information, see Backup Under the Simple Recovery Model.