[angelbob]

This is true. But would the story get out if it happened? And it's not limited to appropriation. There are stories about, say, Assembla, and the terms of code storage changing dramatically. You could also have a company where the security on transferring the code was inadequate. That's a concern you don't have as much if your servers are local (though you need VPN for remote coders).

It's also hard to talk percentages -- there are a lot more companies storing source code on private servers than using external hosting. So yes, more stories of that, but it's hard to talk percentage chance rather than absolute numbers.

[weavejester]

Is the risk large enough to justify using a more expensive and less functional in-house system? To me, the risk of using a third-party host seems vastly outweighed by the benefits.