I'm a big fan of Google Docs. The main appeal is being able to use it on just about any computing device, anywhere I go. I also like being able to share files easily with friends and colleagues.
However, I've been staying away from it recently because it's difficult to backup documents locally on my computer's hard disk. This is useful in case I ever find myself without an Internet connection (if my DSL dies, for example), although it also makes sense in other ways; what if Google accidentally deletes my account, or some other catastrophe happens?
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