There are several companies that do hybrid cloud storage. By this I mean they have a device that is onsite at the customer's data center which contains some storage and caches the storage that is out in the cloud. Most of these vendors support the use of many different cloud storage vendors like Amazon. The theory is that a lot of your data is not access on a regular basis, so it doesn't need to reside locally. The local box looks like an iSCSI or FibreChannel drive to your systems.
The cloud is just a tool. You still need to use best practices to keep your data safe. You can use multiple clouds to replicate your data or use the cloud to keep a copy of the data you have in your data center. Using the cloud can be more expensive, but it can be more available to you in a disaster. Using one of these devices for backup can also free up time since you don't need to manage a tape library.
Data should be encrypted and the key should be stored on a local system and not leave the client site. This is requirement for regulatory compliance.
I've said this before, but it was mentioned many, many times. It's important to design your apps assuming there will be failures, because there will be. Distributing and replicating data and services makes an app more reliable.
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