Should we store on the cloud?

Does anyone else feel fear at the news I first got from the wonderful Andrew Leonard at How the World Works? I put stuff on the cloud – now I wonder whether I should. Here’s Leonard’s intro:

The news that Microsoft has somehow managed to permanentlylose the data stored online by tens of thousands of T-Mobile Sidekick smartphone users has the technology world in an absolute uproar. Beyond the immediate, baffling question — How is it possible that the data was not backed up properly? — there is a larger issue: What does this mean for the credibility of “cloud computing”?

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