cloud computing security?

What security and privacy issues are associated with cloud data storage? What would you suggest should be done for mitigating these threats?

The security and privacy issues occur if Microsoft is involved as they work with the NSA. Also, no system is 100% perfect. Even if all the precautions are taken, something can and most likely will eventually go wrong.

No one use windows. Everything should be done in a secure unix-like environment.

Properly secured Linux or BSD servers should house everything. In addition to having proper customized IP tables for their firewalls, they should also feature a policy manager such as SE Linux or App Armor.