Such threats could "jeopardize the security of information stored in a user's computer or in our computer systems and networks," Google has noted. In addition, "some of our systems are not fully redundant, and our disaster recovery planning cannot account for all eventualities," the report warned.

"Google puts the best spin possible when they are talking about benefits of cloud computing," he said. "However, when they are talking about cloud security in the context of a report to shareholders they are singing a completely different tune. That difference smacks of corporate hypocrisy."

He also said it would be disingenuous for anybody to suggest that Google's comments in its financial statement are the kind of standard disclaimers that every company makes.

"The single biggest problem with cloud computing and the rush to it is that providers have focused on things like latency and access" without adequate thought for security, Simpson said. As a result, it is important to air the security issues in public and work on resolving them, he said.