One of the common objections that comes up when talking to people about storing their data in Azure, is that "we are not allowed to do it". In so many cases, that simply isn't true, or it's true for a small part of the overall data. In other cases, it's a case of no-one wanting to be seen to be the first in their industry to do so, for some perceived liability reasons. Again, most of these are unfounded.
The thing that can change these opinions though is certification by governments. Some have already done so and it's great to see the announcement that Windows Azure received G-Cloud Impact Level 2 Accreditation from Cabinet Office for use across the UK Public Sector. You can read more about it here: http://blogs.msdn.com/b/ukgovernment/archive/2013/04/04/windows-azure-receives-g-cloud-impact-level-2-accreditation-from-cabinet-office-for-use-across-the-uk-public-sector.aspx