diff --git a/services/backup/src/constants.rs b/services/backup/src/constants.rs
--- a/services/backup/src/constants.rs
+++ b/services/backup/src/constants.rs
@@ -2,6 +2,7 @@
 
 pub const AWS_REGION: &str = "us-east-2";
 pub const MPSC_CHANNEL_BUFFER_CAPACITY: usize = 1;
+pub const ID_SEPARATOR: &str = ":";
 
 // Configuration defaults
 
diff --git a/services/backup/src/database.rs b/services/backup/src/database.rs
--- a/services/backup/src/database.rs
+++ b/services/backup/src/database.rs
@@ -29,6 +29,27 @@
   pub attachment_holders: String,
 }
 
+impl BackupItem {
+  pub fn new(
+    user_id: String,
+    backup_id: String,
+    compaction_holder: String,
+  ) -> Self {
+    BackupItem {
+      user_id,
+      backup_id,
+      compaction_holder,
+      created: chrono::Utc::now(),
+      // TODO: Recovery data is mocked with random string
+      recovery_data: crate::utils::generate_random_string(
+        20,
+        &mut rand::thread_rng(),
+      ),
+      attachment_holders: String::new(),
+    }
+  }
+}
+
 #[derive(Clone, Debug)]
 pub struct LogItem {
   pub backup_id: String,
diff --git a/services/backup/src/main.rs b/services/backup/src/main.rs
--- a/services/backup/src/main.rs
+++ b/services/backup/src/main.rs
@@ -11,6 +11,7 @@
 pub mod constants;
 pub mod database;
 pub mod service;
+pub mod utils;
 
 // re-export this to be available as crate::CONFIG
 pub use config::CONFIG;
diff --git a/services/backup/src/service/handlers/create_backup.rs b/services/backup/src/service/handlers/create_backup.rs
--- a/services/backup/src/service/handlers/create_backup.rs
+++ b/services/backup/src/service/handlers/create_backup.rs
@@ -85,3 +85,12 @@
     unimplemented!()
   }
 }
+
+/// Generates ID for a new backup
+fn generate_backup_id(device_id: &str) -> String {
+  format!(
+    "{device_id}_{timestamp}",
+    device_id = device_id,
+    timestamp = chrono::Utc::now().timestamp_millis()
+  )
+}
diff --git a/services/backup/src/service/mod.rs b/services/backup/src/service/mod.rs
--- a/services/backup/src/service/mod.rs
+++ b/services/backup/src/service/mod.rs
@@ -1,12 +1,14 @@
+use aws_sdk_dynamodb::Error as DynamoDBError;
 use proto::backup_service_server::BackupService;
 use std::pin::Pin;
 use tokio::sync::mpsc;
 use tokio_stream::{wrappers::ReceiverStream, Stream, StreamExt};
 use tonic::{Request, Response, Status};
-use tracing::{debug, error, info, instrument, trace, Instrument};
+use tracing::{debug, error, info, instrument, trace, warn, Instrument};
 
 use crate::{
-  constants::MPSC_CHANNEL_BUFFER_CAPACITY, database::DatabaseClient,
+  constants::MPSC_CHANNEL_BUFFER_CAPACITY,
+  database::{DatabaseClient, Error as DBError},
 };
 
 mod proto {
@@ -19,6 +21,7 @@
   pub(super) mod create_backup;
 
   // re-exports for convenient usage in handlers
+  pub(self) use super::handle_db_error;
   pub(self) use super::proto;
 }
 use self::handlers::create_backup::CreateBackupHandler;
@@ -144,3 +147,21 @@
     Err(Status::unimplemented("unimplemented"))
   }
 }
+
+/// A helper converting our Database errors into gRPC responses
+fn handle_db_error(db_error: DBError) -> Status {
+  match db_error {
+    DBError::AwsSdk(DynamoDBError::InternalServerError(_))
+    | DBError::AwsSdk(DynamoDBError::ProvisionedThroughputExceededException(
+      _,
+    ))
+    | DBError::AwsSdk(DynamoDBError::RequestLimitExceeded(_)) => {
+      warn!("AWS transient error occurred");
+      Status::unavailable("please retry")
+    }
+    e => {
+      error!("Encountered an unexpected error: {}", e);
+      Status::failed_precondition("unexpected error")
+    }
+  }
+}
diff --git a/services/backup/src/utils.rs b/services/backup/src/utils.rs
new file mode 100644
--- /dev/null
+++ b/services/backup/src/utils.rs
@@ -0,0 +1,28 @@
+use rand::{distributions::DistString, CryptoRng, Rng};
+use uuid::Uuid;
+
+use crate::constants::ID_SEPARATOR;
+
+/// Generates a blob `holder` string used to store backup/log data
+/// in Blob service
+pub fn generate_blob_holder(
+  blob_hash: &str,
+  backup_id: &str,
+  resource_id: Option<&str>,
+) -> String {
+  format!(
+    "{backup_id}{sep}{resource_id}{sep}{blob_hash}{sep}{uuid}",
+    backup_id = backup_id,
+    resource_id = resource_id.unwrap_or_default(),
+    blob_hash = blob_hash,
+    sep = ID_SEPARATOR,
+    uuid = Uuid::new_v4()
+  )
+}
+
+pub fn generate_random_string(
+  length: usize,
+  rng: &mut (impl Rng + CryptoRng),
+) -> String {
+  rand::distributions::Alphanumeric.sample_string(rng, length)
+}