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Backups...Why so complicated?

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OK, I'm looking into backup solutions. First off, it's a nightmare when you look at some of the costs of companies offering cloud server backup, but what is the best policy for backup? 

Should we look at ONLY backing up our servers? Should we buy a server and just put Windows Server on it and use it for our backup? Or should we go with a cloud company that will back our servers up for the great low price of $500/1gb per year(sarcastic price)? 

Should there be a policy in place stating that individual user profile backup is that users problem? Or should we be backing up our most important department PC's (Business Management, Directors, etc)?


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