The issue as I see it, from reading the article, is that the cloud provider was doing the minimum needed. Sure, backups were automatic, but it's up to the customer to look into them, realize that "hey, these backups are being put in *my* storage, and not getting cleaned up, come to think of it I don't see a way to set a retention policy anyways." Acceptable? Really, no. People look to the cloud as a sort of "fire and forget" system, setup your app / database / blog / etc and not worry about backups, hardware failures, patching, etc. But, it doesn't work that way. You need to find out what the backup policies are and decide if they're acceptable, if the policies regarding patching is acceptable (yesterday I read an article from someone who found out that to upgrade one of their Wordpress plugins, they needed a newer version of Java maybe. Cloud provider said "nope, not upgrading the system your on, you want the newer version pay us to move to a newer system.")
A while back we were looking at a cloud provider to migrate our systems to. When we asked about what was done as far as backups go, their system, while likely OK for a web or app server, was hilariously horrible for a database server. The "backup" system? Scheduled snapshots of the virtual machines. And, all they offered was IAAS (which is fine, it's what we're required to use, basically.)
People need to realize, the cloud providers are not there to make their lives easier by taking on all of the assorted sysadmin / DBA type work, they're there to make *money.* So the providers will give you only the service specified in their TOS / contract, and not one fraction more. So take the time to read through those terms, if possible get a lawyer to read them over, check their online documentation to check what they do / don't do (IE nightly backups with unlimited retention on your storage) then decide if they meet your needs.