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> What kind of customers forbid this?

Government entities, for instance.

https://www.google.com/work/apps/government/

Google has a dedicated cloud environment for governmental agencies: http://googleforwork.blogspot.pt/2009/09/google-apps-and-gov...

> We look forward to working with governments across the country on these exciting initiatives in the months ahead.

So what about foreign governments?

Many in the financial services or healthcare industry. Some of those industries have requirements far in excess of both SOX and HIPAA combined due to SEC scrutiny.

Are you kidding me? This is a very common requirement and one of the reasons larger institutions are building out their own clouds. It's not a requirement for everyone of course, but it's certainly a common theme.