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I fully agree on the nature of data privacy and data residency issues that European enterprises are contending with as they evaluate public cloud applications. (I actually blogged on the same topic based on an IDC report that had similar findings - see http://www.perspecsys.com/removing-cloud-barriers-in-europe/).
There are options for European organizations that find themselves unable to adopt cloud applications due to regulation and underwhelmed by the business proposition of on-premise alternatives. Cloud data protection solutions offer enterprises the ability to safeguard their sensitive data and meet residency and compliance requirements when using SaaS without sacrificing application functionality that end users require. @PerspecSysoffers such a solution and offers a wealth of related content on its website for those seeking additional information on this approach.
11 months ago on Why Is Europe Not Storming The Cloud?