Data Security is one of the topics in migrating to a cloud model but it doesn't do you much good if you hand over the actual ownership of the data to the cloud vendor.
Check the EULA and Terms of Service agreements. They all include language that says the vendor gets to change any part of the agreement at any time with out prior notification.
I don't have to sign such an agreement if my data is handled by my own IT department.
Sure those loopholes haven't been actually tested in court but what company wants to be the legal test case for who owns data stored in the cloud.
In troubled times user data becomes an asset to vendors looking to raise cash to cover expenses and stay in business.
Another common scenario is a vendor going out of business and the data gets purged before it can be backed up (where the data would be backed up is tricky because if a company went 100% cloud, they probably would not have the hardware to back their data up, so they would lose their data unless another cloud vendor agreed to take it.)
A few companies have offered to encrypt data stored on their servers. However, the data could still be sold or destroyed, or stolen.
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