The Canadian Privacy Commissioner just invited interested parties to file written submissions on privacy issues surrounding cloud computing. Also for expressions of interest from anyone wanting to take part in a formal panel discussion in June.
Cloud computing - however one defines it - can be a compelling model, as it can provide advantages in cost, simplicity, and scalability.
It can though, pose issues around things like privacy, confidentiality, security of data, business continuity, and disaster recovery. The importance of those issues varies depending on how the particular cloud product works, what you use it for, and how mission critical it is.