Dan Bricklin gives a good overview of the problems surrounding web services model.
Related, the reason I started using Blogger, a web service, over some of the other options at the time, was that the data also resided on my server as well as theirs. Thoug my prefered situation is where I run the service on my servers, or ufies.org box, in such a way to allow me access from any web enabled internet location/device.
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