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Is the SkyDrive folder local?

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Older post from November 15, 2013. Details may be out of date.

Question asked on Nov 15, 2013
Hi

I'm new to SkyDrive. I've installed the app and have seen a SkyDrive folder appear under my "Favourites" when I open Explorer. This seems to reflect what is stored in the cloud in SkyDrive and when I copy a file to the SkyDrive folder I can see a sync process taking place.

However, is this SkyDrive folder local, on my PC? If so, surely this causes a problem with data volume on the local PC as the idea is to store in the cloud and not locally.

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