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Modernizing the infrastructure of the cloud

What do most people think of when they consider the Cloud? Most people think of a centralized series of servers owned by a few companies that can afford to host and manage them.
The current cloud has many issues -- in particular, it is insecure (most services provide a central source of failure, and no means of ensuring physical integrity of infrastructure), expensive (paying large fees to cloud companies monthly to continue hosting your data).
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