Depends what type of cloud hosting you're looking for. One of the main benefits of cloud hosting is the increase in uptime due to the redundancy that is put into place. If you're on a properly managed cloud then the chances of your site going down is still lower than traditional hosting. As for data and sites, always keep local back ups even though a cloud may offer redundancy in storage as well. But no matter how good a provider is able to offer backup storage solutions, ALWAYS ALWAYS keep your own backups.
If you are looking at reseller services on cloud normally you will be looking at a cloud VDS or something similar. This would offer protection from hardware failure, but still leaves you open to your VDS having software problems.
Something that we have been actively developing is a Cpanel Cluster based on a cloud infrastructure and if you want to go the extra mile you should look for something like that, as it provides both Hardware and Software redundancy.
Guaranteed it won't save you money Your chances of a quick recovery from a node failure is better with the cloud VPS. Generally, the most you have to do is a DB repair since it died abruptly. Your files and config should move with you.
You're basically trading the following risk/recovery types.