After receiving a backup of an On Demand instance, where in the instance backup and I find an extract the data tables for the contacts module?
Data isn't stored in the filesystem at all. It is stored in your database (e.g. MySQL, MSSQL, etc.). You will want to log into your database to get that data from the table. If you perform a data dump, it'll be stored wherever you told it to dump the data.
I suppose my question is how does someone access the database in the On Demand instance then since it is not stored locally without using Sugar as an interface? A backup was requested and they only sent the backup of the instance. Will Sugar provide a backup of the database files?
Thank you for the clarification. There is no way to access the database on On Demand. It's a shared environment so for the safety of all customers and their data, the general public does not have access. On most instances, you can now create a backup which will have the .sql file. First you will get an archive file but once you unarchive it, you will see the .sql files and another archive with the filesystem. This article explains how to do it. If you don't have access to the backups module, you can always open a case for the backup.
Retrieving data ...