Cowplop. World-leading manufacturing companies do their high-demand engineering simulation in the cloud today, and would not think of going back. Including the most paranoically security-conscious defense contractors. I know firsthand that a shitload of the simulation that went into the Joint Strike Fighter, etc., etc., etc. was done in the cloud. TY, you too know this firsthand. Lockheed Martin Defense Systems, General Dynamics Land Systems, Raytheon, General Dynamics Electric Boat, Pratt & Whitney, General Atomics, on and on and on -- these guys may be evil but they are not dummies. They are all way into the cloud today. Likewise with the big EPCs -- Fluor, Bechtel, Halliburton, Jacobs Engineering, Brown & Root, et al.
Granted, consumers may always get the shaft (see related post on the clusterfuck of hotmail's demise -- I hate that like everyone else). But business customers have clout that will sink a cloud provider if one single breach occurs. Look at the success of salesforce.com -- I fought tooth and nail with an old boss who would on no account put our customer lists in the cloud. But now no sensible company would do it any other way. Relying on my own maintenance of my in-office server to keep alive such a critical resource, instead of the professionals at salesforce whose whole business would go down the toilet if they (1) failed to maintain the absolute integrity of my data or (2) allowed any kind of security breach, would just be delusional thinking on my part.
We already trust online banking, providing we have adequate security on our local devices. What is more important than our money?