Their finances have been widely covered in the news.
Their IT Lead is making ~$180K.
Their interest income alone was $500K.
They didn't have a local copy strategically, not for a lack of $5K.
Cloud backup is just another backup, not primary storage, if you care about your data.
Some of us have online, nearline, offline, offsite, and multiple cloud backups with much smaller budgets.
That's for people who care about their data (including the bean counters).
Many IT folks (most?) have had to "I told you so" after a bean counter said no to a small spend. I wouldn't assume the IT department is incompetent without evidence.