Cloud storage is great. You can save files on the internet and access them from all your internet connected devices. It also gives you the possibility to create external backups of all your important files: Even if everything you own get lost in, say, a catastrophic house fire, your important documents, family photos and other digital valuables are safely stored someplace else. Great stuff.
The problem with cloud storage, however, is that you lose all control of your files. The cloud provider can easily access everything, look at your photos and read your documents. The files can also be shared with others by the cloud provider without your knowledge and consent. If you are a bit computer savvy, you can prevent this by encrypt everything you save in the cloud, but as far as I know, none of the popular cloud storage providers make this an easy process. In addition to the hassle of encryption, you have to make sure you have your private key stored somewhere safe, because if that is also lost in the mentioned house fire, you will be unable to access your files.
Up until a few weeks ago, I used two cloud services myself: Google Drive for external backups of important documents, photos and other files that I wanted easy access to across all my devices, and Amazon S3 to create backups of www.vegard.net and other sites hosted on the VBOX. Technically, both services work great. But in terms of privacy, they are rubbish. The files are not encrypted and are just sitting ducks, available to everyone with access, for instance some Google and Amazon employees. Google is planning an encryption project that will make sure your files are saved encrypted on Google Drive, but in practice this doesn’t really have any effect: Since the files are encrypted by the cloud provider, in this case Google, they can just as easily decrypt the files and have a look at them anyway.
So is cloud storage that respects and protects your privacy impossible? No, it’s not.