*sigh*. Okay. I thought it was obvious why this "story" is not quality discussion material, but I'll explain.
The article is presented as if its subject is Eran Feigenbaum's claim that "Professionals should worry about security and privacy of data, rather than where it is stored." But instead the article is a potpourri of quotations and facts unrelated to the main problem with the claim, which the article totally ignores. Any article on the subject of this claim needs to in some way establish that security and privacy can make location irrelevant, and I would expect the supporting statements of the article to do this, but nothing in the story even approaches this basic aspect of the claim. Instead, it is filled with a number of superficially-seemingly-related-but-ultimately-off-topic anecdotes.
After presenting Feigenbaum's main claim, the article presents a "supporting argument" by Feigenbaum: "He cited a meeting in Europe where he had tracked an email sent within an office as it bounced through five countries. In this circumstance, Feigenbaum said, security trumps data sovereignty." So email currently goes through a lot of countries when it is sent from one person in an office to another, where it is likely in plain text and can be read by any number of corporate and government entities. The only way this could possibly be construed as supportive of Feigenbaum's point is if read as "Email currently goes through many nations and it is secure enough". If read with any understanding of how the email system works, it undermines Feigenbaum's point.
Then the article has Michael Cloppert "support" the argument with the same type of claim: "I'm not convinced that the data location issue is a problem - after all, packets are routinely routed around the world irrespective of the export status of their content". Again, the argument is "this is what we're doing now, therefore it is secure enough". Actual security of information going through various nations is not addressed.
Then it presents the "other side" of the argument: There is no way you can know how Google is handling your data even though they assure you they are doing it well. And their contracts have lots of language that could excuse them from legal liability if that is not the case.
Then we go back the argument supporting Feigenbaum's main point. "He said customer data can only be accessed on a need-to-know basis". This does not support 5he argument that privacy and security make location irrelevant. "[L]ess than two per cent of Google staff had entered its top secret data centres". This does not support the argument that privacy and security make location irrelevant. "Google also stamped each hard drive with unique barcodes that allowed the company to track the lifecycle of data stored on each disk." This does not support the argument that privacy and security make location irrelevant.
Then we are presented with this: "But it did not encrypt data at rest, and had no immediate plans to introduce the protection." This makes it sound like location is very important to security and privacy--that someone could entire a facility by force and read the data.
The article acheives nothing other than quoting a single-sentence, questionable claim. It presents the claim, then a number of partially related statements that are presented as "discussion" of the claim but that actually have very little to do with it. I wouldn't be surprised if the article twists what Feigenbaum actually said for sensationalistic purposes.
This article represents the worst type of "journalism".