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They used the cheap option without geographic mirrors.
So you say that if you don't make an additional investment in backup infrastructure your data is at risk... Sounds pretty similar to self-hosting, doesn't it?
More like the "cloud" provider should have multiple locations and redundancy in place.
That will also depend on if you include that in your subscription and pay for it. Some plans exclude that in the cheaper tiers if I remember correctly
Shocking, right? (/s) You don't get what you do not pay for. OVH also offers private cloud hosting, basically managed servers in a cloud setup and normal hosting options. I have no idea, what the datacenter was primarily used for.