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I also keep a backup of my data on a local shared drive but don't feel comfortable relying solely on that. For example, what if my house burned down or got sucked up in a tornado. I know others advocate keeping the backup in a fireproof safe or at a different location from my house altogether. But then, how often would I keep that backup up to date? Probably not a lot.

Having it in the cloud provides a level of redundancy you just can't replicate locally. For if the cloud services company does it right, your data is scattered across multiple servers in different geographical locations. So even if one of their data centers gets destroyed, they will still be able to reconstruct your data set from the other data centers.

I have gigabytes of photos, music recordings and documents that I would never be able to recreate so I want to cover all the bases. As far as NSA, Google, etc., having access to my personal data, I guess I'm not that concerned. They will be bored to tears looking at my vacation pictures and reading my amateur attempts to be a short story writer.