Cloud Security - a thought

Allow user to control encryption.

How to handle application security? Data/Code have to be un-encrypted before application can processing them. Can we build un-encryption into CPU? - which may not work since that also imply access encrypted data in CPU - way to much resources is needed. The other is to run on client - not as efficient but securer. Would client CPU powerful enough for most daily tasks? - When there are more data, the more user would like to do and the more powerful the client computer will need to be. Can server be build so that there are hardware security for each virtual server and let the user control the hardware security until the user release it.