Here are some advantages:
Main drawbacks:
So it is clear: the advantages outnumber the drawbacks, right?
My recommendation: use the Cloud for innovation. For critical reporting, it is more sensible to use more mature front-end tools at this moment.
There are two types of connections to back-end systems: Live Connection and Data Acquisition. Functionalities are quite different at this moment.
If your main concern is your data security, then use Live Connection, as according to SAP, only your metadata will be exchaged with the Cloud (things like a filter value, for instance, hich may sound like data to you).
Exceptions: (they must be activated in the SAC settings).
One important limitation for Live Connections to BW is that Master Data Hierearchies are not available. You can sidestep this limitation by using the HANA Hierarchies instead. You can find further details in this blog: Activate Master Data Hierarchies for SAC
If you need to use planning (which is a different license with a higher cost) then you must acquire the data. SAP is working to make planning available to Live Connection.
Most customers love to readapt the standard visualizations and build their own ones, so that IT can build amazingly expensive to sustain solutions. According to SAP, the target should be to simplify navigation and improve user experience. In reality, many of these ad-hoc dashboards end-up in very complex developments with lack of governance. That keeps IT busy while business users have no time for testing the new changes. These are some of the reasons why an Application Design was essential to SAC.
More seriously, if you want a complete review, you can find it on this serie of blogs:
https://visualbi.com/blogs/category/sap/sap-analytics-cloud/application-design/
You can also find a short video introduction here:
There are some differences with Lumira Designer, the on-premise counterpart.You can find a good list in VisualBI. This will evolve quickly, anyway.
The main ones are: different connection capabilities(actually better for SAC), in Data Binding (there is no DataSource object to be reused, instead a Data Model must be created, even for Live Connections) and the number of available components. Last, but not least, scripting language is somehow different.