[dkarapetyan]

Because if all the computation is still happening on the remote server then that remote server has access to whatever encryption key was used. That defeats the whole purpose of what you're suggesting. Which means you have to shuttle the encrypted data to some private server, decrypt it, and then operate on it which means you might as well just host it locally. The only way this works is if we get practical homomorphic encryption at which point storage truly becomes a commodity and that's when Google loses all interest in hosting that data.