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Like DropBox, SkyDrive contains a version history of your files, including a way to recover accidentally deleted ones. Did upgrading destroy the version history too?

Just because you said it several times, doesn't make it correct. SkyDrive is mirroring and backup - changes in skydrive are versioned, which means that if an unwanted change gets mirrored you can revert it.

If you read their terms and conditions they say it's not a backup system as well.

People really need to read the SLAs etc.

I think you might have missed the point of what the author was saying. Check out the screenshot he posted:

http://www.edandersen.com/wp-content/uploads/2013/09/image.p...

Notice it says that your files are "automatically backed up to the cloud"?

Yes i saw that. It's true, but its not a substitute for a backup setvice. If it was, they wouldn't have the discontinuation of service and disclaimers in their T&C.

But you can understand how people could confuse "automatically backed up" and 'automatic backup', right?