Need for cloud data protection

Cloud services so popular & trending. Google docs, Apple iCloud, M$ cloud office, and many others.

Is it cool?

iSteve told us iCloud is cool, but.

The problem you share sensitive data with cloud service provider. Moreover all work automatically, just open doc then it will be autosaved much hardier to encrypt/decrypt data on the fly. Another trouble, cloud service can be hacked itself. Recent sony hacked yet again is a good reminder.

What should you do, do not trust the cloud, clearly understand the risks.