HT4859 If all devices are backed up on iCloud, do I still need to keep the files on my computer?

If all devices are backed up on iCloud, do I still need to keep it on my computer? It takes up a lot of space.

"iCloud Backup" is a little misleading.
Apple says you get "unlimited free storage for music, movies, TV shows, apps, and books" but then goes on to say "previous purchases may not be restored if they are no longer in the iTunes Store, App Store, or iBookstore". Therefore what you purchased is really not "backed up". Your "backup" is no more than your ability to download your purchases again, and that is nothing new. The content remains where it originated - on iTunes, if it's still available.
Apple could easily change its mind and remove it, change it, or simply make it unavailable.
Photos and videos in your camera roll are backed up, but photos and music that originated on your computer's iPhoto and iTunes Libraries are not.
Your free 5 GB of iCloud storage is also used for iWork documents stored in iCloud, app data, all of which is lumped in with "Storage and Backup".
Same thing for iTunes Match I'm afraid... iTunes Match does not back up your content and is therefore not a backup strategy. It finds a "match" in its vast library and permits you to access it. There have been a lot of complaints from purists who found their mono Beatles tracks were "matched" with stereo equivalents, "explicit" tracks matched with clean, etc.
Contrast this with a traditional backup associated with iTunes syncing. In that case everything really is backed up to your computer - apps, purchases, music, videos, everything. 
The bottom line is that iCloud is no substitute for one's own iTunes backup, and a backup / clone of the device containing it.
More:
Should I use iTunes or iCloud to back up my iOS device?
http://support.apple.com/kb/HT5262
iCloud: Backup and restore overview
http://support.apple.com/kb/ht4859

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