This document presents research on assessing risk to determine the optimal level of redundancy needed when moving critical applications to the cloud. It develops fault tree models based on the physical structure of clouds to calculate failure frequency. It factors in varying resource quality and the costs of downtime and VMs. The results show that deploying between 4-6 redundant VMs provides significant availability gains and reduces total costs by lowering risk compared to basic redundancy approaches. The aim was met of leveraging cloud features in modeling to support high-value, mission critical applications on public clouds.