What happens when they have IP data or licensed data that is being hosted by a cloud provider, or company to company lawsuit. Court case starts
IP in the cloud is worse to deal with than you can possibly imagine. For starters, when somebody grants you a license to use IP, as often as not (and especially in the case of IP licensed to big companies) the licence is restricted to a particular country. This is in part because your IP is a different thing in each country, governed by different rules. If you go storing licensed IP in the cloud, you don't know where it is going to end up - you have a very good chance of breaching your licence. If you think "that's OK, I'm not storing somebody's licensed IP", think again - unless you are wrote it (or are simply using somebody else's IP without a licence, in which case you have the problem anyway), then you are.
Then you have the problem that you likely haven't got the first inkling as to how intellectual property works in the, most likely third world country (if not now, then eventually), where the data is going to be stored.
If you're dealing with confidential information, can you be sure some minimum wage flunky you have never even met is not going to be prepared to sell it for enough money to keep them and their family in comfort for years to come? Can you be sure the law in the country where it happened even cares? The criminal element that wants to sell your private data isn't so much sitting behind a keyboard in their mother's basement writing viruses or using skripts to break into your systems - they're getting jobs at places like Google in their data centres, possibly with a fake resume with their buddies giving fake references.
Then you have the "cloud provider goes out of business or discontinues the service" issues (which are worse if the data is in a proprietary format).
The biggest problems with the cloud are not technical issues (although there are technical issues any time you keep your data "there" rather than "here"). The big problems are the law and people issues. From that perspective, the cloud is a huge risk. If you are capable of safely storing your data and maintaining your systems without the cloud, then you should do so. Leave the cloud for people who cannot look after themselves.