Data Storage issues
"The notion that data must be stored domestically to ensure that it remains secure and private is false". -Castro
For US companies, the NSA controversy would seem to support this assertion. However, this can be misleading as it focuses on the location aspect of the data rather than protecting accessibility of the data itself, which is the real issue here.
Whether your data is plundered by your own government, a foreign government, or a new government (say in the event of a coup), the point here really is that you can't control what governments do (directly). You can outsource your data and data functions to the cloud, but not the responsibilities. "Your" here can mean you personally or the company you work for.
Companies would need to implement their own encryption methods for data at rest in the cloud as well as data in transit when accessing that same cloud information. They should not trust the cloud provider to do this for them, as now you have the fox guarding the henhouse, so to speak. Example: One government coup, and the cloud provider may literally be forced to turn over the encryption keys at gunpoint. They can't do that if the keys are held by the owner of the data elsewhere, out of reach.
Will companies follow up with the requisite encryption? Consider: 1) the costs of acquiring and managing that technology, 2) slower response time of cloud providers serving up data as it's constantly being encrypted/decrypted on the fly [for some businesses, fractions of a second do count], 3) the likelihood, large or small, that at least one competitor will omit doing this as a "cost saving action" to gain an edge on the competition - until the first breach happens, exposing this high-risk behavior. Weigh that against the risk of a data seizure attempt occurring (hint: if the data is out in the cloud long enough, that risk approaches 100%).