I doubt that they would spy on your files. That would be criminal at the least and probably shut down their business. I like to have a job and I think they do, too. How do you come up with these ideas that they would just access your files?
Yeah, and I doubt that Enron would conspire to fix electricity prices or that Goldman Sachs would lie to investors or that AT&T would give government agents access to user data without a court order....oh WAIT, they ALL did all of those things. Once you have stored your data on a remote server under someone else's control you have no idea what could happen. I don't necessarily expect that the provider would spy on my files (although who knows), but I'd be more concerned with warrantless government access. The point is, you've lost control if you give them your files.
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So you have been told by Apple. But flash is the only thing stopping me buying an ipad as most of my time is to watch sports streaming which is 99% flash based. So to say it is dead is complete crap. If this works well, i may buy an ipad over another laptop this year.
I suppose another way to put it is:
Adobe has announced that, for mobile devices, FLASH IS DEAD. They no longer will develop Flash for mobile devices since, according to them, Flash is not compatible with "the modern, HTML5 enabled mobile web"
Of course, Microsoft has announced that they have abandoned Flash for mobile devices as well and will not support it in Mango or future OS versions.
So, you have been told by Apple (first), Adobe, AND Microsoft.