I am not sure why people are so scared about having your information in the cloud. It is just contacts, calendar and email. All email programs are in the cloud anyway. I have never seen any information loss on hotmail servers, ever. You might be able to bing or google something that may have happened many years ago, but if you need to have direct access to your information, maybe windows phone isn't the solution you need. You may need to go to another OS. If you are paranoid because you are doing something you shouldn't be, I suggest maybe you stop doing whatever makes you paranoid.
I have personally lost information when my computer had crashed before when I had a blackberry. I prefer having my information in the cloud so that I have my backup in case if my devices ever fail.
I also use gmail to backup my contacts as well as a 2nd choice with outlook.com, my outlook account is the most updated and every so often, sometimes 2-3 months, I update my gmail contact list. I have a third backup on icloud, but I haven't updated that since I got rid of my iphone.