Cloud Privacy Illusions

A recent conversation with a client brought up the issue of privacy in the cloud.  How does it differ from information stored in other locations?  In E-Commerce Times:   A look at how entities like governments around the world look at this issue.   " ... Privacy in the cloud may be an illusion, given the known cybersecurity risks, not to mention the laws in the U.S. and around the world that permit government agencies relatively easy access to remote data including data stored in the cloud. Of course, businesses have relied on storing data in the cloud for more than 50 years. While many companies take great pains to protect cloud data from cyberthreats, they have no way to prevent governments from freely accessing their cloud data. Companies using the cloud may not realize that cloud data is more vulnerable than other remotely stored data, including data held in disaster recovery locations.... "