I'm sure a lot of buinesses (small or large) find the idea of hosting their documents (often containing business secrets or of critical importance) on the servers of another entity very, very frightening.
Zoho's online tools are, imho, better than Google's and their Remote API solves a lot of the storage problem(http://writer.zoho.com/public/help/zohoapi/fullpage#RemoteAP...) . I suppose there's still a transactional security issue but with more and more people working at home I think that's an issue no matter what.
I think this is a critical flaw, in this day of HIPAA and SarbOx. Any business that allows someone else to store their data (or even process it) risks personal responsibility for their officers -- and what corporate CTO is going to risk that?
I don't buy this. I'm not an expert on S.O. but I'm close to one in regards to HIPAA. As far as HIPAA is concerned as long as you have a Business Associate Agreement that clearly spells out the privacy level expected from the other party you aren't going to get in trouble for a HIPAA violation.
A Business Associate Agreement nothing to address the SOX requirements, which apply to more companies. "Google ate our documents" is not a defense to SOX filing and reporting requirements.
And yet are happy to type them on an OS that is connected to the internet but that they don't have the source code to