@talamakara
I agree that security is an important issue, but that is what private clouds are for - offer scalability, agility, and elasticity in your own IT departments or datacenters; have resource pools and easily configurable VMs that can access them, and offer the IT department's infrastructure/development platform/services as a service internally.
And you can't say that all the data/applications that a company uses require a high level of security - in some cases there's very little risk involved to having a certain service in the cloud.
Companies just have to play smart and know what they can and can't put in the cloud. For the public cloud, these are growing pains rather than the sign of an early demise. For the private cloud management companies, this is an opportunity to allay the fears of security issues.
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