Forgive me, but running the 'newest' technology is not possible right now without using 'new' hardware. Newish usually works, but still, 10 years is stretching it. For a summary answer:
Cloud allows for, extremely high scalability (like literally no roof), low start-up costs / upkeep costs, cheaper resources, and no need to really ever get new computers for your company. I know I am missing something, but my paper is on my school account . There are of course downsides, legality issues are at the forefront there, not security. In fact, the biggest issue is probably who is liable for the content on the cloud, in theory everyone is and everyone is not.
Like. Good thing your not a security expert.
Cloud computing is very very bad for security. For one, you put all of your data in one location. All a hacker has to do is gain access to here you put your servers, and he has everything. You also give access to all of the data from a single computer. That helps the hacker with getting access to the data. Your data is also sent over the internet, and so you still have to deal with the whole fact that someone could eavesdrop in and steal your data.
Then finally, you have to worry about who your trusting with your data. If your computer is managing the servers and everything. Then sure, this doesn't really exist, but with this Chrome idea your letting Google handle your data. Thats putting trust in a third party with your secrets. Thats a red flag no no right there. Never ever ever do that. Ever.
Your also thinking of cloud computing as some kind of magical ability.
The server still has to be able to handle all of your users, and do all of the processing. Imagine your a computer with a thousand users, all doing some video editing. Can you imagine the kind of server that you would need to be able to handle that kind of data? Your going to have to keep upgrading the server to keep handling the data.
Cloud computer just means that you have to upgrade the server, rather then the desktops. Desktops last longer then servers in terms of usabilty because the server has to compute both its own data, and someone elses data. Whereas the workstation only computes its own data.