One of the major reasons often cited by companies for not choosing a cloud computing solution is a concern about security. It turns out however that assuming any cloud solution is somehow inherently less secure than keeping data locally seems to be based more on fear of the unknown than other factors. Any information technology solution, cloud or local, will simply be an extension of an existing networking architecture and as secure as the existing security infrastructure. Nevertheless, given the concerns about security, it's a worthwhile exercise to review the real security threats out there and how those might impact any cloud-based solution.
We can start with the physical location of your data when considering security. Reports from 2013 indicate that almost 43% of data breaches involved employee mistakes, physical theft and/or insider threats. The cloud, it turns out, is not a source of a large majority of company data vulnerabilities. The bigger risk still lies with computers, laptops and local servers.