Earlier quoted context omitted.
I'm not sure those reasons really apply to their case. Especially since they're running the boxes that it's connected to. They can do resiliency, network segmentation, and monitoring on their platform. What's a Cisco box going to do for them?
Dumb switches will blast packets to all interfaces that are connected. If there's a machine on the switch that's in promiscuous mode, it can see all the packets on the local network (including the backups coming in from customers). Managed switches typically have ACL support. I get the KISS principle, but this setup seems to be trading security for simplicity.
Which are encrypted in flight...if they aren't then anyone on the 30 machines between customer and final destination can also see the backups coming in from customers.