Cloud storage services are increasingly gaining popularity as they help reduce the costs and the headache of having to maintain hardware. The services are, however, profitable for small and mid-size data (< 100 GB) backups as the service providers charge by the amount of data and bandwidth. If you are licky, you may find a vendor who offers a flat rate.
For large companies, the traditional backup mechanism (example TSM) may be the prefered choice, not only from a cost perspective, but also in terms of the time taken to recover the data should there be a need to do so. The throughput would be better when you ship the tapes from off-site instead of copying them over the internet.