Companies using cloud services are not taking adequate steps to protect their data. Just 17 percent of enterprises storing confidential data with cloud providers ensure the data is protected, even though 61 percent of organisations have reported a significant attempt to break into their data systems, twice as many as the previous year.
According to the 2010 Information Security Breaches Survey (ISBS) from PriceWaterhouse Coopers, there has been a big shift in the number of companies moving to hosted applications. Three-quarters of all enterprises now use services such as Software as a Service (SaaS) and cloud computing, and of these, 44 percent were entrusting critical services to third parties.
http://www.networkworld.com/news/2010/042610-cloud-and-social-media-lead.html
Companies should take better care warns PWC