sort of.
it is still a hard drive on a server somewhere.
but when I did server stuff, it was something like 14 hard drives on a raid 5 array, with a hot spare.
literally 3 hard drives could fail before you lost data, or I guess 2 while it was rebuilding.
generally the red light means that drive was on its way out and I had a drawer full of replacements, with some replacements in transit.
So I had at least 2 spare drives per array sitting in a desk drawer waiting for a red light to pop.
plus critical servers were on tape backup every night with tapes rotated out.

so you are paying for someone to do all the backup work for you so they are responsible for losing data instead of you juggling all the parts yourself.

could they still screw up and lose your data, sure.
and I am sure they have disclaimers in their contracts to absolve them of all wrong doing if it happens.
but theoretically it would have to be some serious disaster to lose it all, or some one screwing up pretty hard core.
of course the less you pay, the more likely they could lose it.

I do several levels of backup/ copies.
some of these things aren't considered backups in the real world, but work for my personal stuff.
I have a spare drive internal to the machine that I run sync toys2 on every night. so all my files get backed up there from the main drive it sits on.
I have a NAS running a raid array, that can lose 1 drive, and still not lose data, with a hot spare in the box, it also has sync toys2 using it as a mirror.
I have a second NAS that everything from the first NAS copies to when it gets new files.
once a year or so, I burn everything again on blue ray in case an old copy got messed up.

NAS, drives, burner, etc. I probably have nearly 3k in backup gear.
that is about 5 tb of storage capacity, but only using about half of it.

IT can get expensive or you can do it pretty cheap. just depends on what you are trying to accomplish.
2 is 1, 1 is none. lol.