Well, some server huggers may be more worried about compliance laws, liability lawsuits. When you host you own data its under your physical control and you can take measures to safeguard it more proactively because you are at the server, router,switch. You can look at the traffic and packets going in and out, you can monitor the file i/o on the drives. with the cloud you let your data(about other people) out of your direct control.
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Well, some server huggers may be more worried about compliance laws, liability lawsuits. When you host you own data its under your physical control and you can take measures to safeguard it more proactively because you are at the server, router,switch. You can look at the traffic and packets going in and out, you can monitor the file i/o on the drives. with the cloud you let your data(about other people) out of your direct control.