It appears that we (collectively) are being dragged kicking and screaming into the cloud, whether we want it or not. I agree with many of the other replies, that security is a big issue and expect to see some major hacks in the near future with data, much like the credit card hacks at many of the retailers.

I don't think we can avoid the cloud, as this seems to be a natural progression for most of the software companies, and like all the others, Microsoft does not want to be left behind. I do think this needs more thought and consideration before putting all your eggs into the cloud basket.