The cloud will never take off because there is no way that businesses will trust their confidential information to be sent back and forth over the Internet. They also still want to be able to work if the Internet connection goes down.
Not sure I'd say *never* but your point is consistent with my experience. Of course you could partition your apps with confidential data kept local but, still, it's a hard sell - in my experience. It will take some time for business leaders (technical and
non-technical alike) to warm up to the idea.