The people who use only AWS or only RackSpace or only 1&1 are equally wrong.
What you have to do it diversify. Run a production site ghost on some other platform (software/hardware bugs, ...), run by some other provider (bankruptcy, theft, ...) in another country (power cuts, earthquake, ...). As soon as the primary goes down you switch on the secondary. The probability of a total blackout is then squared: 10^-3*10^-3=10^-6.
The great thing with these "cloud" platforms is that your secondary system can even "go to sleep" saving you money and then spin up instances as soon as the primary goes down. This is by the way how banks, airport-systems and probably the NSA do it!