Absolutely. I had a Netgear Raid box. The PSU died - disks were apparently ok and recoverable, but the proprietary disk format from Netgear meant a normal PC couldn't read it! Fortunately data backed up elsewhere but don't trust stand alone boxes anymore.
They do just see '1's & '0's BUT these are checked carefully as they are sent over the Internet with a checking algorithm. You can usually rely on the data being stored in the cloud as being the same as the data on your computer. In my case with Sugarsync, this data then ends up on my work...
I'm currently using Sugarsync for all my data, which has been fantastic over the last couple of years and saved me a few times as it saves copies of deleted files and even changed files automatically. I also have it installed on my work PC (40 miles away) so when I start up the PC, my data is...
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