Client side encryption is definitely the way to go, soon enough computation will become possible on the encrypted data. Maybe there will be homomorphically encrypted virtual machines/ containers.
In my opinion, homomorphic encryption is the new quantum computing. Remember all the hype there was 15 years ago, around the time the first quantum computers were being demonstrated? I think homomorphic encryption will be the same: it's an interesting concept, and it has some specific use cases where it excels at, but I think we'll see that it doesn't really beat traditional encryption for most realistic needs.