Many organizations are willing to accept the fallbacks of cloud backup storage because it’s the tertiary backup in the event of physical catastrophe. In my experience those tertiary backups are there to prevent the total loss of company IP in the should an entire site be lost. If you only have one office and it burns down work will be severely impacted anyway.

Obviously the calculus changes with maximally critical systems where lives are lost if the systems are down or you are losing millions per hour of downtime.