Using Litespeed TSQL commands or Command Line Utility it is not possible to perform a backup to a backup device. It is only possible to use a backup device when backing up using the Enterprise Console. In the script generated from the GUI Backup Wizard, the actual path defined in the backup device is used as opposed to the device name.
ADDITIONAL INFORMATION:
Currently the use of Backup Devices is only supported via the LiteSpeed Enterprise Console. Trying to backup to a device using TSQL Commands (using the @backupdevice parameter) or command line will not work. As a result NCS will also fail backup to a device. The GUI simply passes in @filename based off the device chosen. This means the @backupdevice parameter will not work with the LiteSpeed extended stored procedures.
WORKAROUND:
Manually type in the Full path of the actual backup location that is stored within the Backup Device.
STATUS:
An enhancement request has been submitted to Development for consideration in future release for LiteSpeed for SQL Server
Native Command Substitution is not supported with SQL Server 2005 or after LiteSpeed Version 4.7