It means that in order to be certified you have to use providers that in turn are certified or you will have to prove that you have all of your ducks in a row and that goes way beyond certain levels of redundancy, to the point that most companies just give up and use a cloud solution because they have enough headaches just getting their internal processes aligned with various certification requirements.

Medical, banking, insurance to name just a couple are heavily regulated and to suggest that it 'just means certain levels of redundancy' is a very uninformed take.