This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Apple Pushes Into the Cloud

Stocks in this article: AAPL NFLX GOOG

Apple cloud story updated with additional analyst commentary.

MAIDEN, N.C. ( TheStreet) -- Apple's (AAPL) massive new data center in Maiden, N.C. may provide the key to the tech giant's technology roadmap and could herald a major push into future cloud-based services, say analysts.

The notoriously secretive gadget maker has provided scant details of its new facility, which reportedly cost $1 billion to build and, at 505,000 square feet, dwarfs the company's existing data center in Newark, Calif.

Last year Apple CFO Peter Oppenheimer told analysts that the North Carolina project was on schedule, and was expected to be complete by the end of December.

Avi Cohen, an analyst at Avian Securities, says that Apple's data center expansion is a clear indication of future on-demand and hosting services. "They are going to open their new data center in North Carolina and push less local storage on their machines," he told TheStreet.

Bill Kreher, senior technology analyst at Edward Jones, says that Apple's Maiden site is laying the foundations for a slew of new services. "They are certainly readying for something -- I think that a new cloud computing initiative is likely" he told TheStreet. "It would be a platform that would allow content streaming to Internet-connected devices -- it seems obvious that in the future, Apple expects its customers to store their files in the cloud."

There have certainly been big hints as to Apple's cloud plans. The tech giant dispensed with hard disk drive storage on its new MacBook Air, in favor of Flash and "Internet services." Apple also overhauled its Apple TV offering last year, adding content streaming for Netflix (NFLX) , Google's (GOOG) YouTube, Flickr and MobileMe.

Kreher says that a cloud-based version of iTunes is on deck, letting users stream content to any Internet-connected device. "If there's anything that we have learned with Apple, it's that they like to proceed at a measured pace -- it makes sense to start with iTunes," he said.

Apple declined to provide comment for this story when contacted by TheStreet, although there was plenty of chatter about a cloud-based announcement before the company unveiled the Beatles on iTunes in November.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs