It's fair to scrutinize the security mechanisms and processes offered by cloud providers. However, you have to ask yourself: Can I do it as well or better? I dare say the real answer in most cases is: probably not. Using [perceived lack of] security as an excuse to not go with a cloud provider is getting weaker and weaker as more proven businesses run in the cloud. And anyone who brings up the AWS outage from last year as a reason needs to get a reality check and move on with their life.

It's kind of like flying vs. driving:

When you fly you have absolutely no control over your own fate. You've put your life completely in the hands of a 3rd party. As it turns out, flying is THE safest way to travel. Why? Because aircraft have multiple redundant systems and are mostly well maintained, pilots are well-trained (and well-paid) and the operational conditions of an aircraft are tightly controlled and monitored. Unfortunately, disasters do happen and planes crash (and people really do win the Mega Millions). That said, airlines learn from their mistakes.

Compare that with driving. Your fate is somewhat in your own hand...but not entirely. However, practically any idiot can get a license. In the US, state governments happily hand over loaded weapons to inexperienced 16 year-old drivers every day. There are plenty of good drivers around but sadly they share the same roads with the really bad drivers. Maintenance is shoddy or non-existent. Training really isn't required. Bad drivers don't learn from their mistakes, they just keep driving badly. As a result, driving is THE worst form of travel.

I see cloud providers as airlines in this scenario (yes, yes....there ARE some good ones...in Asia :-)) and the rest of us as drivers (some good, many not). Make your list as TravisDBA suggests, check it twice, make a decision and then just get on with it.

Besides, in a few years I don't think there will be much of a viable alternative anyway; if you want cost-effective and rock-solid, you will run in the cloud.