The security issue isn't all FUD. There are legitimate reason that you may not want to use a cloud like EC2 for certain things. Remember, you don't control the

The security issue isn't all FUD. There are legitimate reason that you may not want to use a cloud like EC2 for certain things. Remember, you don't control the hardware for EC2. Some could modify the system so that all security measures you take are defeated. Is that /dev/random you are using to encrypt your memory really random? Your private electricity example is probably a good example. Most datacenters and companies that rely on power pull it from multiple grids and actually do have a way to generate their own private power. The same will probably hold true for IaaS at some point. It will be something people grow to trust but if you want that last 0.1% you are going to have to do it yourself.