One of my projects at work (I'm an IT guy) is to find a vendor for online data storage. One of the best options I've looked at is Iron Mountain, and they recently gave me a quote for 400 GB cloud storage. Monthly cost: $624. They are on the more expensive end, but now you understand why 1 TB for only $60/m is cheap.
Consider catastrophic data loss due to acts of God, i.e. floods, tornadoes, hurricanes, earthquakes, etc.; something capable of destroying all the data in the building regardless of how many redundancies you have built in. And consider that the loss of data will almost assuredly put many companies out of business, especially finance and legal companies. This data is absolutely confidential, as is data from hospitals, etc. This isn't about a sucker being born every minute, this is a requirement for a 10,000,000 annual revenue company staying in business.
A high-end cloud storage company offers many services the others don't. For example, they'll have 3+ data centers around continent, and even if catastrophic accidents happened to two of them, the user wouldn't even notice. Of course the data center also has redundancy in itself to handle drive failure. Consistency and speed and redundancy of their ISP is also something you pay for, and it's important because their internet downtime could mean the loss of your most recent data, or their slow speed means delays in uploading your data to them for backup, and especially delays in getting it back when you need it. A good cloud storage company will be able to back up files automatically and back up files incrementally (e.g. upload only the 100 KB of changes to the 40 GB database, not re-upload the entire 40 GB of the database). They will also maintain separate backup pictures of all your files from every 15 minutes and keep them for years (up to seven years in the case of Iron Mountain), allowing you to truly revert to earlier versions of a file even if you've deleted or misplaced it. And also, a high quality cloud will ship your data and a temporary server to you ASAP so your company can handle a server outage without closing down.
Iron Mountain is too expensive for my company's needs, so I'm just using them as a real world example. There are a lot of misconceptions going around about what business cloud storage could provide and what is a fair price for these services, and why they are needed in the first place. I hope my post is educational for some of you.