The Cloud: When it’s Good, it’s Very, Very Good – But When it’s Bad…

I've been hearing a lot more pro-cloud chest-thumping lately.  One article basically said, "Fears of the cloud are overblown. You need to get off it!"

I don't think the creators of "Binky" would agree.

What I'd like to know is, were there backups?  If so, were those deleted, too?