You are correct, but in this world I'm choosing a SINGLE third party to host ALL of my data. There's no distribution of risk, my data portfolio is undiversified

You are correct, but in this world I'm choosing a SINGLE third party to host ALL of my data. There's no distribution of risk, my data portfolio is undiversified, etc. They get hit, its all over. In fairness, I guess I could have a bunch of pods like financial, social, pictures... or even a pod for each service: facebook_pod, bank1_pod, etc...and host them all with different third parties to try to minimize risk. But this gets incredibly cumbersome.