hansschmucker: Actually, the server I've rented is a good deal more reliable than the one I use at home. Let's put it like that: A perfectly administrated server nearby is better than a perfectly administrated server far away (alone for the fact that you can control the physical access). But I prefer "the cloud" as the kids call it nowadays to an ill-administrated facility nearby.
Of course, if the task is big enough and you have people who are able to do it, by all means do it yourself.
KingofGnG: Well, I could agree with you when you say that if the server is well-administered is OK, but I can't. Because there isn't only the problem of the administration. There is the connection, that is unreliable "per se" (OT - funny how much Italian/Latinic words there are in the English language :P).
Not only the server will always fail, and continues to fail again and again and again with great exposure on the wordwide news highlights, but your "cloud" efforts vanish as snow in the sun if you have to constantly synchronize somehow the work from server to client to deal with downtime periods. And they are always here expecting you and your mission/company/editing/work.
This "cloud" thing is just what it seems: a funny game for kids.
The connection is an additional point of failure, I'm not going to deny that. But, if you look how badly many computers are set up (just look at the number of PCs without current updates, or the number of zombies), I can't help but think that for these users, it would actually be better to hand all administrative tasks off to a remote "specialist". Updating their mail client is apparently beyond what many users want to do, and so I direct people like this to online mail services.
Then there's the natural redundancy problem: Should every user keep a copy of the Google index? Or the Wikipedia? Or better the whole net? It's just not practical. If a large amount of data is shared between users, then it makes sense to store it online. Also, it eliminates the sync problem.