The over all problem is that only a certain set of people should have access to non publicly disclosed data. Putting this data on another companies servers is

The over all problem is that only a certain set of people should have access to non publicly disclosed data. Putting this data on another companies servers is a gross violation of the law. If a Google employee can see the raw data that belongs to a Google Docs user then Google Docs will never be sufficient for fully replacing locally installed software.