If the app is hosted entirely in the cloud, _everything_ is gone if the provider pulls the plug suddenly. If the app is hosted on a device that I own and the provider goes away, it will probably still keep working for a while. Worst case, I still at least have the option of hiring someone to crack it open and extract the data to import someone else.
This is such an important concept that it even has its own field of study and practice called "business continuity." Many business have legal agreements with customers and partners _requiring_ this.