Version 7.0 of LiteSpeed for SQL Server can automatically create directories at the time of backup. It creates the entire directory tree if needed.
Previously, the job would fail and the error message would display "ERROR Message: LiteSpeed for SQL Server could not open backup file:..." for the folder that was trying to be created.
LiteSpeed 7.0 now automatically creates directories at the time of backup. It creates the entire directory tree, if needed. Not only does this prevent backups from failing but it also means you can leverage the LiteSpeed “%” variables in folders to dynamically organize backups. In a backup template, for example, you could use the following path to organize backups by Server, Instance, and Database: \\BackupShare\SQLServer\%SERVER%\%INSTANCE%\%DATABASENAME%
NOTE: This feature also works for Backup Templates.