Cloud computing, or software services on the internet are “the” new wave in computing. This is the natural evolution of ICT towards a utility service. Our societies do depend on ICT for most of its instances. This new wave will be explained, and clear benefits highlighted. They offer also for governments new opportunities to enhance their e-services, refine their governance, impact the democratic process. However some major challenges have been identified. What about data sovereignty, privacy protection, overall security and other policies. This presentation offers Microsoft’s viewpoint as a cloud provider on this matter.