Most SMEs do not even seem to have backups with another provider.
I cannot see EC2 being shut down but other services might be, and there are all sorts of other issues. The idea that a cloud provider will just take care of everything is delusional. You still have work to do. It might be less work, but its there.
There was an Australian pension provider that recently had an issue with their main cloud account and services shut down. Luckily the regulator required they had backups with a different provider so they were able to restore everything. This is a business running something like AUD 125bn of other people's money.
