“Google enterprise chief: Data is safer on our cloud than your PC”:http://tech.fortune.cnn.com/2011/03/10/google-enterprise-chief-data-is-safer-on-our-cloud-than-your-pc/
Statistically, there is little question that this statement is true, but Google faces the same challenges as airlines do when it comes to customer perception.
Statistically, you are much safer flying on an airplane than you are driving in a car, yet people are disproportionately afraid of flying when compared with riding in a car. Some propose that a major component of this fear is control related. In an automobile, the rational fear that should be present is subdued by a sense of direct control and familiarity: you are the one driving the car, and despite the fact that you are driving at speeds that can easily kill you, the sensation is familiar.
The same rules apply for cloud vs local storage. Statistically, you’re far less likely to lose data in Google’s cloud, but with your data on your own computer, you feel more in control, and it’s a mechanism you’re familiar with. If Google is smart, they’ll pursue a propaganda campaign informing customers about the statistical reality. I have a feeling that this is going to become a growing concern, not just with enterprises, but with consumers as well.