Cloud computing may be inevitable, but security concerns about the technology platform just won't go away.

“The cloud” is unquestionably the hot new thing in the IT world, with supporters across Corporate America and the government sector alike touting its low cost and (allegedly) simple implementation. Still, concerns from legal, audit, and risk-management types stand in the way of mass adoption—and for good reason.

Cloud computing and its relatives, such as software-as-a-service, provide a way for companies to outsource everything from data storage to powerful service applications, paying only for what they use, scaling rapidly, and cutting IT costs in ...