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Doesn't this defeat the purpose of cloud?
Nope, it'll still rain
No, this gives the control of the cloud to the people using it. Security conscious people or people that want to keep their data as their own data (rather than in the nebulous state of being on someone else's hardware, thus ownership is murky) are (mostly) the ones who would want to use something like this.
At this point to consumers cloud just means internet accessible storage.
I think private cloud are a pretty good alternative. Think about how many FIOS/internet box sitting at home unused most of the day, that would be a good use case.
Apparently, if it happens on/over the internet, it's in the Cloud these days.
Alternatives ?
Seafile is my horse : http://seafile.com/en/home
Care to share a little more? I've heard about it, but haven't heard from anyone actually using it.

Is it stable? Does it work as advertised?

It is stable enough for me. The opened issues on the github aren't really game breaking.
It doesn't seem to support Linux presently... Which is a shame because I'd love to set this up on my Linux-powered HTPC.
Well interesting, not the first, won't be the last.

I am using ownCloud on my own server for things, that are not that mission-critical and I am using git on my own server for private repos.

What is left, is some kind of alternative (selfhosted, open source) for google docs. Some alternative for a spreadsheat and some text-document, editable via a browser.

Etherpad, if you don't already know about it, but you're also probably interested in interior.substance.io.
As far as I can see it doesn't offer anything that isn't already covered by OwnCloud. Owncloud also offers integration with many other web apps featuring calendaring, ldap, email, etc.. The only license info I can find states "All rights reserved".. I don't have a windows pc to install it on but I assume it has a click through license agreement.. I would have to read that carefully for any "you grant us remote access to your self hosted files" or similar crazyness.

Owncloud is released under the AGPL v3.. my only real gripe with owncloud is the fairly shoddy android app!

I stopped using Owncloud after the sync client deleted a new local file. If a component that's designed to synchronise files will happily delete them in an unrecoverable way, that's a design that I won't trust my data to.
Our Tonido Personal Cloud software (http://www.tonido.com) and sync clients offers exactly the same (Like dropbox but on your own server) on all the OS'es (Windows, Mac and Linux). We also have awesome mobile apps for iOS, Android, Windows 7.5 and Blackberry.
But tonido is limited to 2GB or something like that, isnt it?
This looks useful, and I have also looked at ownCloud.

A little off topic, but I feel reasonably secure keeping sensitive information on Dropbox and Google Drive by using a little trick: I have scripts for different work flows that ZIP and GPG encrypt material and copy (overwriting previous version) to Dropbox and Drive for backup.

This is not so convenient in that I can't access encrypted material easily on my droid phone and iPad.

You can go a step forward: put a TrueCrypt volume in there. Much more convenient.
Android is a good OS. You can en/decrypt GPG files with the free software gem APG: http://www.thialfihar.org/projects/apg/ And of course you can unzip. You have full access to the filesystem on your user facing storage partition.
Amazing how many comments in this thread think this is the same as Owncloud. If they had just read the FAQ they would have known that it wasn't.

Owncloud is a client->server<-client model, this is a client<->client model. Essentially any "client" can become a "server."

Owncloud is a great business tool for companies, I think this product is more aimed at individuals with multiple devices who want to share files between them...

PS - Owncloud has a lot of technical hurdles to overcome. Both the client AND server needs a lot of work. It is a great concept, but needs some refinement.

...for the same reason the title suggested "own cloud (like dropbox but on your own server)". Isn't Dropbox client > server < client ? Also, because people mentioned that's a pity it's not available yet for Linux. Let's be fair, it's "amazing how you ignored the title".
The title was my bad. I misunderstood how the SelfCloud works. I am glad somebody pointed it out.
Datacenter == shared folder? really?
In fairness, there are a number of mistakes on the page that indicate it wasn't written by a native speaker.
The about page indicates that the company is based in China.
Looks interesting but the spelling/formatting mistakes riddled through the homepage turn me off.
dang... was really hoping it was what the title says it is. If there ever was a case for the mods resetting the HN title, this is it. I DO have my own server... but it runs linux and that does me no good with this app. :(
Try open source owncloud, I created a script on GitHub that will install the server with SSL on a fresh Debian server. I am syncing from OSX, Windows and Ubuntu. Try it in a VM

https://github.com/mgutz/owncloud-ssl

Awesome, thanks for posting it and not even for the setup script. I haven't heard about owncloud before.
Does it support LAN Sync? Shared folders with non-SelfCloud users? Instant Upload from Android?
Yes, I would like to trust all my documents, photos, etc. to a random software development company (and a product with no published business plan to fund its own existence) located on the other side of the world in a country where the government has an active interest in using technology to accumulate information it would not otherwise be able to obtain from citizens of my country... where do I sign up?