Amazon EC2 provides the ability to place instances in multiple locations. Amazon EC2 locations are composed of Regions and Availability Zones. Availability Zones are distinct locations that are engineered to be insulated from failures in other Availability Zones and provide inexpensive, low latency network connectivity to other Availability Zones in the same Region. By launching instances in separate Availability Zones, you can protect your applications from failure of a single location.
Google has a reputation for highly reliable, high performance infrastructure. With App Engine you can take advantage of the 10 years of knowledge Google has in running massively scalable, performance driven systems. The same security, privacy and data protection policies we have for Google's applications applies to all App Engine applications. We take security very seriously and have measures in place to protect your code and application data.So if you're truely hosting in the cloud, and assuming the FBI (or other TLA) can get into one their uber-data centres (I imagine there are an army of Mr Burn's-esque lawyers ready to be hot-dropped from orbiting death stars) and find the relevant server (see this video to get an idea of how hard that would be), it won't matter - you'll simply recover your app or server instance in a few seconds (maybe in another jurisdiction) and be off to the races. If you're simply outsourcing to a local colo, then you're out-of-luck if the TLAs grab your particular chunk of shared physical substrate. The customers in the same data centre as The Pirate Bay learned that lesson. Bottom-line, being in the cloud, the true cloud makes you far more resilient (probably almost completely immune) to the loss of a chunk of physical substrate and if you've got privacy concerns (which surprisingly wasn't reported as being a concern all in this instance) you can encrypt the virtual disk. My favourite line in the Wired article - "Only 'a bomb to the building' or, as it happens, an FBI raid, could cause the servers to go down, the company stated." Side note: I'm not convinced that we'll ever see something like a cloud computing bill-of-rights here in Canada (even though are privacy laws are stronger) for the simple fact that the law enforcement has this nifty get-out-jail free clause that basically says "it's ok as long as it doesn't bring the house of justice into disrepute" (and it's the courts who make that decision), so if in the process of seizing someone else's digital assets they'd probably be seen as clear of doing harm. If they happened to stumble across evidence of some illegal activity by the digital-bystander during the investigation of the suspected wrong-doer, they'd probably be able to prosecute (thing of this being treated equivalently to "Your honour, I saw something suspicious through the car window, so I proceeded to search without a warrant as I had reasonable cause").