Red Hat's Diane Mueller Talks About OpenShift (Video)
OpenShift, says Wikipedia, "is a cloud computing platform as a service product from Red Hat. A version for private cloud is named OpenShift Enterprise. The software that runs the service is open-sourced under the name OpenShift Origin, and is available on GitHub." This is a video interview in which Diane Mueller Explains OpenShift in depth. You may want to watch this OpenStack demo video as well.
Services like EC2 provide you with Linux OS instances (among other things). If it suddenly becomes more expensive to use AWS that it is to stand up a data center, we'll stand up a data center... with Linux boxes. It's not like people will stop making servers, all these hosting businesses actually have to use the same hardware I would.
The data security issue is a little more on-point, but decentralized maintenance of data creates uneven results that are more likely to tend towards the insecure end. While Amazon or RedHat could hire morons to maintain your data, so can anyone else, and your local morons are more likely to be unchecked and unsupported by people who do know what they are doing.
These businesses will not toss your data if you are paying for them to maintain your data. Yes, free Google products might, but that's because they're... well... free. The paid stuff doesn't just delete your data at will. And they don't have to, because you're paying to keep it up.