Anecdata: I’m a lawyer and programmer and my clients (large financial institutions) are increasingly insisting on hosting as much on-site as possible. It costs more, it can make it difficult to select vendors/service providers, and it’s not without business continuity risks which they take steps to mitigate.

But I think more and more companies, particularly those in highly regulated industries, are deciding that the benefit of controlling the data — access, security, privacy, and understanding who, exactly, it’s being shared with — outweighs the risks of someone else having that control.