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Honestly only you can decide whether "privacy" is a factor for you. To the very best of my knowledge, Amazon's Cloud is secure, and I've never heard of anyone having data issues with it. If you're just uploading books you've bought elsewhere, personally I don't see the problem. If you have extremely sensitive or confidential material on your reading devices, you should obviously think twice about loading them onto any third-party server.
Amazon's infrastructure works extremely well. Many people manage their books with Calibre and send them from Calibre to the Amazon Cloud.
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