Cloud Computing: Understand the Risks - BusinessWeek

Increasingly, organizations and people are placing their data on cloud servers. Most cloud service providers do have security in place, some of it very good, usually based on encryption. So that means the security of the cloud provider needs to be assessed before it is even used. Then it means recognizing that even though the provider may have good security, it's not likely to be absolutely flawless, so the risk of exposing particular types of data needs to be assessed before sending it off. In this process, some of the most sensitive data within the organization may be found to be too sensitive to take the chance, and should be kept on home servers. Cloud Computing: Understand the Risks - BusinessWeek