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The biggest issue I have with "the cloud" is not knowing where my data actually resides and who would have access to it that I wouldn't be able to know of or control. Further, if it's in some 3rd world country I have to be aware of any connectivity issues between me and there, not to mention any political issues going on there or between me and there that would potentially cause service distruption.
I sleep much better knowing where my data is and who controls it.
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