"Last backup failed" message on iPhone 5s

I opened my iPhone this morning and discovered this popup:
They offer the following pricing if I click to change storage plan:
10GB = $20
20GB = $40
50GB = $100
So let me count, my iPhone has 64GB capacity, so to back it up if it's filled completely I'd need to pay $100 + at least $20. Hmm... So they sell those high capacity phones and then charge premium for a backup...
I obviously don't want to pay $120/yr. to back up my phone, especially when there are so many much better options than iCloud.
So I was wondering if there's a way to back it up somewhere else? Google Drive? Sky Drive? Anywhere else?

Back up all apple devices free using itunes.
http://support.apple.com/kb/ht1766
please read article

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