My personal strategy is a local drobo with 4 disks for primary storage. The drobo gets backed up monthly to external 2tb drives that I rotate off-site. Important stuff (ie not music/movies) gets backed up to the cloud. Very important stuff (taxes, legal, financial) is in truecrypt containers on all four.
I also scan most anything useful I get on paper gets scanned straight into Evernote, where they turn it into a PDF and run OCR over it so that it's searchable. Important stuff from that gets into the TC containers.
I also use truecrypt whole disk protection on everything I can, since I have lots of PII on users from all the services I work on.
Remember, you always have one less copy of your data than you think you do.
H.