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I know my servers are about 1000 miles from my current location, is that local?
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Local enough for me ... we host servers from all over the world.
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Location DOES matter. Just like if you're a bar in Los Angeles that is advertising to local clientele you likely do not want your servers in Florida as there is a longer connect time.
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I'd agree, given that all other factors are equal - price, quality of the bandwidth, uptime of the provider, support and so on.