There's no single CLOUD, no basic formula that truly describes all the scenarios where cloud computing could be used, and this is why article like those are frankly, a lot of bullshit.
The fact that Google developed services that are hosted "in the cloud" deliver a lot of information to Google has little to do with how cloud computing works, it just tells you how Google works. An offline application provided by Google could (and actually does) aggregate the same amounts of data and just deliver them to Google whenever a connection is available. In fact most Google offline apps already do that.
There are dozens of scenarios ranging from simple storage (which makes a lot of sense to spread across different computers: for example a clever cloud hosting would move files within the cloud to servers which are close to the majority of users) for websites to replacing normal applications (which is sometimes a good idea, usually when the enduser can not be trusted to keep his system and applications in a working state by himself) and high performance applications that require a lot of performance at times, but not constantly (which can be a lot cheaper because resources can be shared), all of which are sometimes referred to as cloud computing. All of which work differently with the cloud.
What about security and trust? Well, that's something that can't be answered easily either as there is no single way that all cloud systems work: Some are managed entirely by the provider and therefore grant him (and anyone who breaks into his system) total access, like GMail. Others leave the encryption to you with only you having the keys while again, others let you manage all aspects of how your data is stored or accessed.
Articles like that are just a gross oversimplification and do little more than creating FUD. There are problems, but these articles don't educate anybody on how to solve them.
Post edited February 19, 2009 by hansschmucker