Cloud Computing and Business

It seems like cloud computing could be a very cost effective way for a business to deal with its' computing needs/storage needs/license fees depending upon how many employees it has. Things coudl be easily shared and it would totally open up the "working from home" idea. The risks are that - (a) the internet might go down or a hosting site might go out of business, (b) once the information is on the interent, it's available to everyone, no metter what anyone says to the contrary.