However, you really need to be careful as to where the data you place in cloud computing is stored.  A recent article gave USA assurances of the safety of data stored by US cloud computing organisations. Yet even this article wondered what the EU would say about how safe the data would be http://www.businesslawinsider.com/2013/05/29/cloud-computing-finds-u-s-sanctioned-shelter-in-the-u-s-eu-safe-harbor-program/?goback=%2Egde_99787_member_247556784

Even if this was true and the data is safe as far as the new guidelines issued by the U.S. Department of Commerce’s International Trade Administration (“ITA”) can make it there is still the issue of the USA’s Patriots Act. As far as I am aware this Act can require US companies to supply any data held on their websites or servers to US Intelligence Service Organisations and it is against the law to even let their clients know they have supplied it.

Apart form this there is also the fact that whenever you store data overseas, what happens if the company in question breaches your trust and sells. Loses or makes the data available to others?

If there is comparable Privacy legislation you can try to seek some recourse. However, the data is gone and your customers’ privacy is breached. If there is no Privacy legislation, then “bad luck”.

The best protection you can get is to bind the company with a contractual obligation and include financial penalties if a breach occurs. However, depending on the laws in that country and the legal (court) system, you may still not be able to penalize the company.

In the meantime the damage to your company and its reputation with your customers may be permanently and irreparably compromised.

It truly is a case of Caveat emptor (Let the buyer beware).