Re: My company has axed all backups...
The way to demonstrate cloud storage as a bad idea is a common-mode JCB fault on the internet feed to the site. All of a sudden, none of it is accessible unless people have taken copies. If they're shared files, you then get the chaos as multiple people work on it and there's merge conflicts when they all try to sync back to the cloud when the fault is fixed.
How about the example where someone quit his job and, like a good ex-employee, wiped all of the company content from the Dropbox folder on his personal machine... Except he'd forgotten to disable the work account first so it deleted the cloud stuff too. Oops.