Old fashioned it may be but you seem to have a surprising high trust in Microsoft, Google, Amazon and CO to not only be able to secure their infrastructure beyond any doubt but also to never turn evil from inside and scan your files no matter what. Ohh wait Google does that already, their user rights document you have to agree to to use their cloud services specifically states that they are allowed to scan your documents for service improvement purposes. In terms of Google that also means to improve their ad business revenues, it's after all still their core business with which they grew to the multi-multi billion $$ business they are nowadays. Sure they have other business diversifications that start to get important too, but the "Don't do evil" slogan from early days Google has long been abolished. 😄
Microsoft, Amazon and all the rest are businesses too, and when they believe they can get away with something to improve the revenue numbers under the final accounting line they will do it, as is their holy duty in the name of our modern day golden calf called shareholder value! 😄
But the real danger is not only evil intent, it is simply neglect! There is not a single week in recent years where not some server out there is discovered to expose very sensitive data to the broad lovely and always friendly internet. Cloud services being the core business of those business units from these companies makes them of course try hard to avoid such issues but errors often lie in very small corners but are so easily done.
System Link cloud service being in fact outsourced to a real cloud service (NI doesn't want to go into running their own cloud service business anytime soon) doesn't make that less likely. It's simply one more intermediatery between your client, you, NI and the cloud service, that can add a critical error source.