Statistically, there is little question that this is the case, but Google faces the same challenges as airlines do when it comes to customer perception.
Statistically, you are much safer flying on an airplane than you are driving in a car, yet people are disproportionately afraid of flying when compared with riding in a car. Some propose that a major component of this fear is control related. In an automobile, the rational fear that should be present is subdued by a sense of direct control and familiarity: you are the one driving the car, and despite the fact that you are driving at speeds that can easily kill you, the sensation is familiar.
The same rules apply for cloud vs local storage. Statistically, you're far less likely to lose data in Google's cloud, but with your data on your own computer, you feel more in control, and it's a mechanism you're familiar with.
I really wouldn't doubt the article premise: that data is safer at google than your home pc.
Then again, they also mention chasing after corporate MS users and they try to convert these corporate customers from windows+office+msserver to windows+google. That's fine and dandy. I've called in with a problem with windows for a client. 500$ later, and they helped us with all sorts of edits that did fix the problem.
I can, with money, call in to Microsoft. Who do I call in to google with a problem with hosted google mail, or apps, or google search 1u server?
Not sure why this is downvoted. It's a valid point. Yes Google can probably safeguard your data from natural disasters/technical disasters/outside prying better than most companies.
However by entrusting your data to Google, you are putting your faith in Google and hoping they don't pry into your data.
Statistically, you are much safer flying on an airplane than you are driving in a car, yet people are disproportionately afraid of flying when compared with riding in a car. Some propose that a major component of this fear is control related. In an automobile, the rational fear that should be present is subdued by a sense of direct control and familiarity: you are the one driving the car, and despite the fact that you are driving at speeds that can easily kill you, the sensation is familiar.
The same rules apply for cloud vs local storage. Statistically, you're far less likely to lose data in Google's cloud, but with your data on your own computer, you feel more in control, and it's a mechanism you're familiar with.