I think I read an article every day that lists the reasons not to use Cloud Computing or software delivered using a SaaS (Software-as-a-Service) model. Security, Performance, Reliability, Control, Privacy, et al. I admit, all of these are concerns, and any company should weigh the issues before choosing these models for themselves. That is not the issue. The issue I have is that these articles write as if these issues will prevent the cloud computing and SaaS models from reaching mainstream acceptance.
Back in the early days of electricity, many people had electricity generators in their own homes. Someone came along and proposed a centralized model. There were many reasons why that model was "never going to work." Some persist today with people having backup generators and other redundancy. The electric chair was actually a PR stunt to show how dangerous AC current, served centrally, would be. But eventually, the more efficient model won.
When the web first came about, there were thousands of articles showing why commerce would fail over the internet, and some still say it will - I bet Jeff Bezos didn't listen.The bottom line here is, yes, cloud computing and SaaS will have their issues and growing pains. But a model that can offer exponential economies of efficiency, features and scale, will ultimately be adopted. All these issues are but minor speed bumps at the start of a long interstate.