1. A system that facilitates allocation of backup data among a set of peers and an online storage service, comprising: a processor coupled to a memory that retains computer-executable instructions, the processor executes: a distribution component that allocates backup data among a set of peer devices in accordance with a priority assigned to each peer device in the set; and a cloud backup component that transfers backup data from the set of peer devices to at least one of the online storage service or other peer devices in the set of peer devices.