Even if it were a server, you'd have to protect yourself against the exact same risks: hardware may fail, the datacenter may burn, your data may be destroyed by cosmic rays.

Cloud platforms let you avoid physically dealing with the hardware, and conveniently using ec2-create-snapshot instead of tapes back-and-forth, but the paradigm is exact the same.

If you care about your data and your servers, you have to plan for failure. Cloud or not.