Google docs etc: is the data transfer secure?

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Swamp Thing
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This video ...

... At around 01:26 they say that data to and from the Google apps server goes across unencrypted.

Is that true, given that all these services are necessarily over HTTPS ?

On a related note, does a VPN layer add any value in terms of data security, above that provided by HTTPS ?
 
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Swamp Thing said:
... At around 01:26 they say that data to and from the Google apps server goes across unencrypted.

Is that true, given that all these services are necessarily over HTTPS ?
The point they are making is that the data is unencrypted on the Google Apps server. They are presumably promoting alternative services where the server does not have the keys to unencrypt the data and all decryption is done on the client. This also means that all processing also has to be done on the client.

Edit: that's not very clear. The services they are presumably promoting have an additional layer of encryption in the client application so the flows are:

User data -> encrypted using password -> HTTP message -> encrypted via HTTPS -> internet -> decrypted via HTTPS -> server app: stores data encrypted using password unknown to server.

Server: retrieves data encrypted using password unknown to server -> HTTP message -> encrypted via HTTPS -> internet -> decrypted via HTTPS -> client app: decrypts data using password.

Swamp Thing said:
On a related note, does a VPN layer add any value in terms of data security, above that provided by HTTPS ?
No, the security in HTTPS comes from the fact that only your browser has the private key to decrypt communication from the server and only the server has the private key to decrypt communication from you.
 
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pbuk said:
Server: retrieves data encrypted using password unknown to server -> HTTP message -> encrypted via HTTPS -> internet -> decrypted via HTTPS -> client app: decrypts data using password.
There is still a hitch with that process that bothers me. The reality is that if one can see the data in a browser before encrypting it or after decrypting it, the data is technically readable by the server as well with javascript. I know the whole business model of these companies is to say "we promise we won't do that", but it is still technically possible if someone (government, hackers, frustrated employees) took control of the server somehow.

With apps offered through an app store, it is a little better as the app files are downloaded only for a specific version and if the app is properly audited or open-source, a change in the javascript files would be noticed and users (hopefully) would be alerted.

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