[Swordmaker]

The 2nd Circuit Court of Appeals has ruled that the US Government cannot force Microsoft (or any company, for that matter) to divulge customer data they are storing for them in the cloud if it is kept off shore. Redmond, Washington-based Microsoft Corp. sees the ruling as a "major victory for the protection of people's privacy rights under their own laws rather than the reach of foreign governments," Brad Smith, its president and chief legal officer, said in a statement. He said it also "helps ensure that the legal protections of the physical world apply in the digital domain." — PING!

Locked Cloud Privacy
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[ThunderSleeps]

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If I were using cloud storage for anything important I would make sure I encrypted it locally with my own encryption (not the cloud provider's) before storage. That would reduce the utility of cloud storage somewhat - any device that I wanted to access it from would have to be able to decrypt it - but would increase the security. However, the only thing I really have in the cloud are some vacation photos.