First of all, you cannot do much if you keep all the data encrypted on the cloud (basically just backing things up, and hope you don't have to fetch it given the egress cost). Also, availability is exactly the kind of issue that a fire cause…
What part of the incident did you miss: the problem here was that they didn't backup in the first place.
You don't need the Cloud for backups, and there's no reason to believe that they would have backuped their data while using the cloud more than what they did with their self-hosting…