Just to add to the excellent post by @bob.fairbairn , I have read plenty of people who have had online cloud service accounts (especially iCloud) canceled with very few options for account recovery. So in that case, things stored in iCloud Drive, iCloud Photos, iCloud mail accounts, were lost forever.
I always make sure that sync service items are downloaded to at least one computer and that they are backed up well, with restores tested at least once per year.
But to counter one thing that Bob said,
I can’t tell you how many times I have thought I wouldn’t need something anymore, deleted it, and then ended up restoring it months or years later. So I always think it’s always best to back it up just in case.
That said: I was just the other day going through my iCloud Drive and saw some files and folders I know I will never need again, so I did a quick pruning then and will spend some time soon looking more closely to see if there are more items I can prune.
This was at least 25 years ago, maybe as much as 30 years ago. I was working for a small company that had a Netware file server running on an HP server with a five disk hot-swappable RAID5 array. We always kept a spare drive around, and two or three different times we had a drive failure in the array. Because it was hot-swappable, we were able to remove the bad drive, put in the new one, and let the RAID rebuild itself.
One day we had a failure. Because server performance was poor while the array was rebuilding, we decided to risk waiting until the end of the day to swap the drive. Official office hours were 8:00 until 4:30, and though of course plenty of people stayed after 4:30, it was a much smaller set of people. So at 4:30 I did an incremental backup of the server and, when the backup completed, I swapped the drive.
The wrong drive.
As careful as I was to make sure that I knew which drive to swap; despite triple-checking to make sure I was pulling the right one, I pulled the wrong one. The server immediately made me very aware that it was not happy. I tried reinstalling the drive I had just pulled, but it was too late - the RAID was corrupted and could not be rebuilt, because one drive had failed and one drive was missing.
So I had to replace the correct drive, wipe the array, reinstall Netware, and start the restore from our DLT tape drive (thankfully with a robotic tape changer.) I stayed until the restore was complete and I could verify that everything was working right, including the Groupwise mail system. The restore finished at 8:15 am the following morning and I let everyone back on at 8:45.
That was one long night.