Security

I'm contemplating installing Virtual Office, however I have a major concern about security. Are the documents, email, etc, protected from someone at my hosting company browsing through them on the server in their spare time? Same thing with hacks, if someone should get past the server security measures and download my company data, will it be a data party for them or is everything protected or encrypted to block prying eyes? I'm assuming this would somehow be tied to a serial number or something similar. If not, I can't see how I'd use this to store any company data. If there's no security is this contemplated in the very near future?

Thanks

Hal