I think the craziness of it is highly context dependent. If you're expected to be running everything in "the cloud" anyway, then as long as you have execute permissions on the cloud computer you are authorized to...ok no now wait a minute, you're right. This is crazy no matter how you slice it.

M: "Ok, here's your company issued computer. You're not allowed to do anything with it, because security and IP."

D: "Ok, but I need a computer to compile unique code, and I need to be able to execute that code..."

M: "Good news! We bought lots of cloud compute, so you can do whatever you need or want with your compute!"

D: "...how is this different."

M: "Well you see, we didn't issue those computers. So if something bad happens, it isn't because of us. It's because of the cloud."

D: "...but if something 'bad' only happens because of the code that I wrote, isn't it still bad whether its running here or there?"

M: "Fine! If something bad happens, it's your fault, not the cloud, because we didn't do it, and of course the cloud is infallible."

D: "I'm not working here."

M: "..."

D: "..."