Cloud is a security disaster.

Look at the NSA mess. Any large company now has to worry about where their data is stored, which country will pass what secret espionage orders (and that's what the NSA is doing, let's call a spade a freaking shovel here).

Problem is, the shift to cloud is a major undertaking. Encryption is only as good as the algorithm and you're expecting your data to remain secure over hundreds, perhaps thousands of miles of geography?

Encryption will only be viable IF no formula is ever discovered to factor large prime numbers easily. The instant it is--poof. ALL encryption goes bye-bye.

That day will come. The cloud won't be able to handle it. At least a local server can be physically protected. A data center?

Bye-bye cloud. Pity you took civilization with you...