Unrelated, but anecdotal. The company I work for has a dedicated server running multiple VMs, but as we're not a tech company as such, it makes more sense to have it hosted somewhere and have someone else do the maintenance. Which is what we do, we use a local hosting provider. They do daily snapshots and weekly tape backups.
That's how it was supposed to be, at any rate. This March, the hosting provider did a VMWare update. It takes some time so the VMs were offline for several hours, no biggie, this was known beforehand. But when they came back online, the web server was all funky. Permissions were all over the place, but once those got sorted, something seemed very odd. There was a lot of missing content and the latest leads/orders were from September. It turns out, the update had corrupted the snapshots (which are of course deltas), that was the state VMWare was able to revert to (an incomplete state at that, what with all the incorrect permissions).
But no worries, there's the tape backup, so only a few days of data will be missing. Well. It turns out, it had ran out of tape. There were some rather heated discussions with the hosting provider which continue to this day. Morale of the story, sometimes even when you do have backups, you don't have backups.