I understand encryption - what problems does it solve exactly and at what cost? I don't mean in terms of money I mean in terms of creating other problems.
People who like the concept of the cloud should familiarise themselves with the old adage that there's no such thing as a free lunch, sometimes expressed as, you get what you pay for, or you don't get owt for nowt (Northern England).
Sure, there are plenty of freebies to be had on the internet, but when you're in business, your data is often your most valuable commodity. Stock can be easily replaced. Personnel can be tricky but a serious data loss can bankrupt a company and will almost never be covered by insurance.
Of course, you can argue that it's safer on the cloud and maybe it is with respect to loss by system failure, but by any other measure it most certainly is not (e.g. reliability of access or certainty that it won't be copied).
Here's another problem to add to ones I suggested above...
What happens if you fire someone who has access to your company data on the cloud? The risks of data theft are guaranteed to be that much greater.