Both. By storing more of your data in the cloud, you're allowing companies to know much more about you. Gmail, for example, which offers its e-mail service free of charge, tucks advertising into the right column of each electronic letter. Google tries to make these ads relevant to your interests by selecting subjects that match the contents of your e-mail. Mention a wedding, and Google might show ads for caterers, photographers, and honeymoon travel deals.
This is just some of what companies theoretically could learn about you through the data you send them. Weigh the privacy concerns for yourself.