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One of the major issues people have with Google Apps is the fear of allowing their data to be spread over servers that they have no control of. If some one else is in control of your content, you can't have the same level of assurance as if it's in your own hands, right? Not necessarily.
With the security used in their multi-billion dollar adwords system, Google's cloud based server architecture that obfuscates data by splitting it across multiple servers, and custom built servers with their own OS (leaving them nigh impossible to analyze for weaknesses), you would be challenged to come close, even with an unlimited security budget.
Further, because employees can access information securely from anywhere, they're less likely to save sensitive data to local drives, and thus less likely to accidentally allow information to fall into the wrong hands.
In short, your information is safer in the cloud.
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