I was at a meeting recently for our startup. For half an hour, I was listening to one of the key people on the team talk about timelines, the market, confidentiality, being there first and so on. But I couldn't help ask myself the question: all that talk about confidentiality is nice, but there isn't much talk about physical security. This thing we're working on is web-hosted. What if after uploading it to the webhost, someone walks into the server room (don't even know where that is) and grabs a copy of the code and the database. The database is encrypted, but with access to the machine, you'd have the key.
What do the big boys do to guard the code from being stolen off? Is it common for startups to host it themselves in some private data center or what? Does anyone have facts about what known startups have done, like digg, etc.? Anyone has firsthand experience on this issue?