> Google have more credibility (and money) to lose from a high publicity hack than government contractors
No, Google's (along with other major USA based firms) credibility flew out the window the minute E. Snowden released the NSA documents. I don't think that any corporation who has to manage sensitive information is going to trust Google or any other USA based company in the post-Snowden Era. The risks outweigh the benefits.
Except that we're now in the post-Snowden era, and companies like Google have taken measures to harden their networks against (among other things) GCHQ-esque intrusion.
In contrast, the other party in this story---the NHS---apparently hands out sensitive medical data on physical DVDs. I suppose on the plus side one doesn't need to worry about GCHQ being interested in illicitly acquiring that data, as if they have a relevant interest in it they can just ask their neighboring government agency.
While this was clearly an inappropriate act on the part of the contractor, it's not inappropriate for moving the data to a less secure medium or less credible institution than the origin.
What from the leaked documents tells you they lack credibility? From what I remember it was England's own GCHQ that was wiretapping the leased lines between Google data centers.
No, Google's (along with other major USA based firms) credibility flew out the window the minute E. Snowden released the NSA documents. I don't think that any corporation who has to manage sensitive information is going to trust Google or any other USA based company in the post-Snowden Era. The risks outweigh the benefits.