diff --git a/controllers/che/backup.go b/controllers/che/backup.go
index 0736907402..9a107f540f 100644
--- a/controllers/che/backup.go
+++ b/controllers/che/backup.go
@@ -20,6 +20,7 @@ import (
 	"github.com/sirupsen/logrus"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/types"
+	"sigs.k8s.io/controller-runtime/pkg/client"
 
 	chev1 "github.com/eclipse-che/che-operator/api/v1"
 	"github.com/eclipse-che/che-operator/pkg/deploy"
@@ -105,10 +106,13 @@ func getBackupCRSpec(deployContext *deploy.DeployContext) (*chev1.CheClusterBack
 // getBackupServerConfigurationNameForBackupBeforeUpdate searches for backup server configuration.
 // If there is only one, then it is used.
 // If there are two or more, then one with 'che.eclipse.org/default-backup-server-configuration' annotation is used.
-// If there is none, then empty string returned (internal backup server should be used).
+// If there is none, then empty string is returned.
 func getBackupServerConfigurationNameForBackupBeforeUpdate(deployContext *deploy.DeployContext) (string, error) {
 	backupServerConfigsList := &chev1.CheBackupServerConfigurationList{}
-	if err := deployContext.ClusterAPI.Client.List(context.TODO(), backupServerConfigsList); err != nil {
+	listOptions := &client.ListOptions{
+		Namespace: deployContext.CheCluster.GetNamespace(),
+	}
+	if err := deployContext.ClusterAPI.Client.List(context.TODO(), backupServerConfigsList, listOptions); err != nil {
 		return "", err
 	}
 	if len(backupServerConfigsList.Items) == 1 {
diff --git a/controllers/che/checluster_controller.go b/controllers/che/checluster_controller.go
index 8e8aadb94e..8530714e3f 100644
--- a/controllers/che/checluster_controller.go
+++ b/controllers/che/checluster_controller.go
@@ -262,25 +262,33 @@ func (r *CheClusterReconciler) Reconcile(req ctrl.Request) (ctrl.Result, error)
 
 	if isCheGoingToBeUpdated(instance) {
 		// Current operator is newer than deployed Che
-		backupCR, err := getBackupCRForUpdate(deployContext)
+		// Check if any backup server configured
+		configName, err := getBackupServerConfigurationNameForBackupBeforeUpdate(deployContext)
 		if err != nil {
-			if errors.IsNotFound(err) {
-				// Create a backup before updating current installation
-				if err := requestBackup(deployContext); err != nil {
-					return ctrl.Result{}, err
-				}
-				// Backup request is successfully submitted
-				// Give some time for the backup
-				return ctrl.Result{RequeueAfter: time.Second * 15}, nil
-			}
 			return ctrl.Result{}, err
 		}
-		if backupCR.Status.State == orgv1.STATE_IN_PROGRESS {
-			// Backup is still in progress
-			return ctrl.Result{RequeueAfter: time.Second * 5}, nil
+		if configName != "" {
+			// Backup server configured
+			backupCR, err := getBackupCRForUpdate(deployContext)
+			if err != nil {
+				if errors.IsNotFound(err) {
+					// Create a backup before updating current installation
+					if err := requestBackup(deployContext); err != nil {
+						return ctrl.Result{}, err
+					}
+					// Backup request is successfully submitted
+					// Give some time for the backup
+					return ctrl.Result{RequeueAfter: time.Second * 15}, nil
+				}
+				return ctrl.Result{}, err
+			}
+			if backupCR.Status.State == orgv1.STATE_IN_PROGRESS {
+				// Backup is still in progress
+				return ctrl.Result{RequeueAfter: time.Second * 5}, nil
+			}
+			// Backup is done or failed
+			// Proceed anyway
 		}
-		// Backup is done or failed
-		// Proceed anyway
 	}
 
 	// Reconcile finalizers before CR is deleted