This Day On The Street
Continue to site
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

Fear, Uncertainty, Doubt and Apple's iCloud

NEW YORK ( TheStreet) -- Apple (AAPL - Get Report) dominates devices. Apple dominates the consumer market.

In the cloud, however, Apple is nowhere.

Not that the company doesn't claim otherwise. Apple even calls its Software as a Service, or SaaS, offering, designed to back up your important (and unimportant) files the iCloud.

But iCloud is not a cloud. The iCloud is a proprietary data center, run by Apple, owned by Apple, currently located in North Carolina.

Cloud, by contrast, is a specific set of technologies over which Apple has no control. Cloud is open where Apple is closed.

Cloud uses open source, or at least open standards, so you can address a whole host of computers -- or hosts of hosts of computers - as though you were addressing one. This is the infrastructure Google (GOOG) and (AMZN) spent the last decade building while Apple was working on its devices. They rent this stuff out. They call it Infrastructure as a Service (IaaS).

There's a whole industry, which Apple missed, dedicated to building on these platforms. Every big computer company, save Apple, now has a cloud strategy. You can even download, run and edit your own cloud software "stack."

Rackspace (RAX) has placed this open source cloud, called OpenStack, into its own data centers. Hewlett-Packard (HPQ) and Dell (DELL) are building similar networks of OpenStack infrastructure around the world, investing billions of dollars. International Business Machines (IBM) can build you a cloud right now, based on the same cloud technology it uses.

Add languages and other tools to a cloud IaaS and you have Platform as a Service, or PaaS. Create services on a PaaS, which is built on IaaS, and you have cloud SaaS.

SaaS, as Apple defines it, has been around for a half-century. IBM called it the Service Bureau. CompuServe called it time-sharing. But these offerings were always limited to single installations of hardware. They were always limited to specific software.

They were not, in other words, cloud.

Apple's SaaS system has been shown to be bunk. Apple's own customer service people gave away a reporter's identity to a hacker, CNN reported, who proceeded to trash it and destroy files. Apple co-founder Steve Wozniak came out and said, as reported, "Cloud is scary."
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $111.73 0.12%
FB $94.94 0.72%
GOOG $649.32 0.41%
TSLA $219.82 2.00%
YHOO $32.75 -0.33%


Chart of I:DJI
DOW 17,092.78 -39.08 -0.23%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,820.95 -17.6930 -0.37%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs