It's a cloud-based product. So processing is a core part of the value proposition - the provider (Google, Microsoft) stores a copy of the data and exposes APIs that the frontends use to download the documents to the users' machines.
The alternative is a product that is not collaborative (no online collaboration, at least) or requires customers to hire a sys admin to install on their own servers and maintain it.
This isn't some nefarious plot by big tech to steal your data, it's the product people want.
The alternative is a product that is not collaborative (no online collaboration, at least) or requires customers to hire a sys admin to install on their own servers and maintain it.
This isn't some nefarious plot by big tech to steal your data, it's the product people want.