Backing up unique data is extremely important. Many dedicated server server operating systems even come with built-in backup tools and functionality. For a local server, the simple solution is to have a backup device or even an entirely separate server used for backup.
When your server is hosted remotely, however, a reliable backup depends on having a separate server that can connect to your remote server, backup the files, and keep them secure. While a local backup device is still an option, many are turning to the cloud.
Cloud storage services allow system administrators to send their backup files to a remote device, hosted by a third party, and only pay for the space and bandwidth they use. The big advantage is that it does not require you to manage another server. You can also expand your backup space, as needed, and it is very inexpensive.
The disadvantage of cloud backups is that you are entrusting your data to a third party, in addition to already trusting a web host. You are also limited to their security measures and their supported methods of data transfer. Furthermore, if you have a large amount of data, transferring can be difficult, and getting access to it, should you need it, may require paying the cloud service to send you the physical drive.
Overall, you should weigh the advantages and possible disadvantages and decide whether using cloud backup is the best option. It is definitely better than backing up data to a home computer or, even worse, not having a backup at all. If it is your only reasonable solution, you should definitely use it.