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National Defence uses US cloud services for 'mission critical' applications
(www.nationalobserver.com)
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As said by another, no need to offer the service worldwide, no need to be competitive, just need not to give them our data. It will cost a lot yes, but I'd much rather that than giving freely all our data to a fascist government and a kowtowing corporation.
Also nice moving of the goalposts, you first said that the article's title was deceptive, "because the datacenters are in Canada". I maintain my claim that this changes absolutely nothing to the story.