As a founder of another startup (octocall.com) choosing to host our database with another company (postgres, hosted with Heroku) the decision is a simple one: You trade infrastructure management complexity for a monthly fee. Especially when you're starting out, the team is small, and time is much more expensive than whatever your database provider is charging you per month.
It's a great trade-off for most early-stage companies, because managing databases is hard. I'd rather leave it to the experts who specialize only in managing databases. You and your product team have a thousand and one other things to think about other than managing your database. Your provider may end up making mistakes, but that's part of the risk you take.
Security breaches are a mess for everyone involved, and we're in relatively new territory here in the Infrastructure As A Service space. Overall, I have little doubt that IAAS overall is a good thing. As an industry, we'll learn and improve on how to deal with all things "security", but we're clearly not there yet.
It's a great trade-off for most early-stage companies, because managing databases is hard. I'd rather leave it to the experts who specialize only in managing databases. You and your product team have a thousand and one other things to think about other than managing your database. Your provider may end up making mistakes, but that's part of the risk you take.
Security breaches are a mess for everyone involved, and we're in relatively new territory here in the Infrastructure As A Service space. Overall, I have little doubt that IAAS overall is a good thing. As an industry, we'll learn and improve on how to deal with all things "security", but we're clearly not there yet.