Ah, the wild and wonderful world of the cloud
people tend to forget that cloudy services still is connected to the wibbly wobbly web
if it wobbles, off your data goes
same with the cloud, if it wobbles, off your data goes as well.
Recovery in the first instance depends on the level of damage (power failure, vacuum cleaner, lightning strike, BOFH act, backhoe digging into a crucial backbone) - no data will be lost except downtime for which the company have to pay in lost hours if it does not have a redundant internet link in place... (the BOFH act may range from a simple upload of the wrong firmware to the router, to an epoxy-resin welded circuit breaker, to a rm -rf * on the Boss's terminal)...
Recovery in the second instance depends on the cloudy provider's IT crew (and hardware should it be required)... and yes, data may be lost, depending on the severity.