Their Office data will be saved on MS/US servers!
How this is bad?
Well for one thing those customers would come under the label "foreigners" in NSA terms: and that pretty much means that they can look at it as much as they want.
Microsoft has already lost business over this:
viewtopic.php?f=15&t=3022
So it makes perfect sense to sell in enhanced security features. The Office 365 does now have improved encryption and a new encryption key system.
The problem that Microsoft has previously handed out encryption keys to the NSA does remain - and what has made them more trustworthy since then? They might even mean well - they still cannot deny the US government the access to these data if they so should desire (as they have desired until now).
It does not compute well in Europe to leave the Office data to US servers - these days. Microsoft might need to build an infrastructure in Europe (that cannot exchange data with US servers) if they want business there.
More here
