Cloud storage is a great solution for disaster recovery. Data is backed up to a location in a different geographic area. This becomes even more important is you are in an area prone to natural disasters. Some examples would be hurricanes on the Gulf Coast or earthquakes on the California coast. An example of an organization in the second category is the City of Carlsbad California.

The city did a good job of backing up their data but it was done in the same data center. They also use a tape rotation service. The city has moved to cloud storage located in Colorado. This protects the data from a regional disaster like an earthquake. The city can now open a new data center if the situation requires it.

Always remember 3-2-1 when backing up any data.

3 - Have at least three copies of the data.
2 - Store the copies in at least two formats. For example in a server and also on a backup tape.
1 - Have at least one copy in an off-site location. That doesn't mean in another room. An even better solution is to have it stored in a different region of the country.