I think the way the "cloud" was explained for years before it became mainstream was misleading. People would explain that if there were any failures within the cloud, data would magically shift to another part of the cloud with zero downtime. Obviously this isn't true, even Google has suffered outages in their cloud.

That's not to say the solution is to use managed data centers, but we will get better and better at improving the reliability of the cloud.

The cloud is not fail-proof.