I cannot use cloud services because of the liability for mistakes in security.
I host my own data. I do not allow outside viewing. Therefore, I control the access cross-company to other companies’ data.
But cloud-based storage makes me liable for other peoples’ mistakes.
Yes it does - and breaches cause different liabilities in different states and countries. I think at this point, over half of our states have specific mandatory, time-based breach responses. That means if the cloud is breached, somehow you must become aware of it and then respond according to the depth and breadth of the compromise by each state statute.
A "cloud service" by its very definition means your don't know or care where it is hosted. Like differing state laws, international legal requirements are much more diverse.
I could go on, but I think most people get the point...