Intranet in the cloud

Over the past few years there has been tremendous noise about the benefits of cloud computing, but in reality many businesses are still struggling with the idea. From what I heard there are 3 main concerns:
Where is my data?
It’s a human nature that we still pretty much need physical contact. The idea that our data will be located among millions of others somewhere which we don’t know exactly is scary. Some might still think our data is equivalent of piece of paper stored in unknown place with millions of other papers.
Security
We all heard the benefit that could computing in a managed infrastructure will guarantee security, from the latest patches of the OS up to cross-continental back-ups. Most organisations are still concern about security of cloud computing even though it is a safer than leaving it in your office and you find out the next day the office was flooded.
Change
One issue related to cloud computing is the concern of IT Downsizing. As more and more services related to IT become outsourced and centralized many IT jobs will become obsolete. Some says cloud computing will flourish in current economic situation but in the other hand businesses are facing difficult decisions.
Share your thoughts
Do you think cloud computing is suitable for your organisation? Share your thoughts and read more about claromentis model of software deployment.
Good post. Another issue is that of accountability. When a service is down, it is not always easy to chase a particular team/service provider to get the problem fixed. We have heard a lot of frustration with people using Google Apps, or other services where SLA is not properly defined.
I am interested to see how larger companies would embrace this, especially those with large IT departments, some with perceptions that their process/requirements are too unique, too complex for them to even start considering cloud computing, that the better solution is to build and maintain an in-house system which can react more quickly to users needs.