John Naughton is professor of the public understanding of technology at the Open University. Writing in yesterday's Observer, 28 July 2013, he says:
... no US-based internet company can be trusted to protect our privacy or data. The fact is that Google, Facebook, Yahoo, Amazon, Apple and Microsoft are all integral components of the US cyber-surveillance system. Nothing, but nothing, that is stored in their "cloud" services can be guaranteed to be safe from surveillance or from illicit downloading by employees of the consultancies employed by the NSA. That means that if you're thinking of outsourcing your troublesome IT operations to, say, Google or Microsoft, then think again.
... when your chief information officer proposes to use the Amazon or Google cloud as a data-store for your company's confidential documents, tell him where to file the proposal. In the shredder.