The "cloud" is a huge problem in the finance, legal, healthcare, and educational fields. Confidential client/patient/student data leaking out all over the place is a disaster waiting to happen, not to mention often outright illegal. Let me give you an example: I recently bought a Livescribe Skypen, the new one with Wifi. It automatically syncs with Evernote, and works like a charm. But I can't use it for purpose, tak…
There is a legal distinction between subcontracting out services and sharing data. One that has no difference from paying for a service contact that allows a vendor to login and fix your db.
There are very few situations where EVERYTHING must be internal.
Google Apps is big in education, so "sharing" data under contract must be legal.