This Day On The Street
Continue to site right-arrow
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!

Bottlenecks of the Cloud

Stocks in this article: YHOO DAL LUV CMCSA TWC

As telecommuting gains in popularity -- and most homes on a line have at least two workers -- you can see how things slow down. Pile on the problem of "bit commuting" and they slow down a lot.

Then add in the fact that most telecommuters these days are multi-tasking. They may be doing a teleconference in one window, a shared spreadsheet in a second window, and maybe checking out in a third, looking to see what Dana is saying.

What looked like an abundance of bandwidth a decade ago is turning into a shortage. It's seen in the form of a degradation of service to remote workers. This means their productivity is going down.

There are lots of opportunities here. There are opportunities for software companies to improve security for remote workers. There are opportunities for network equipment companies to design things more efficiently.

But there are also costs. The cost of running a truck out to a neighborhood goes up every year -- never mind the cost of equipment and the cost of re-designing cable networks so people get the bandwidth they're supposedly paying for.

When you let people work remotely, you pay all these costs -- for the VPNs, for the bits commuting to your cloud, for the bandwidth running here, there and everywhere. When you force workers into the office, they pick up the tab for those three extra hours -- getting dressed, getting in, getting home -- and we all pay for the resultant road traffic and pollution.

The point is that there are huge opportunities, and some costs, in making telecommuting work better for the worker and for the employer. Yahoo! is just calling a time-out on the future while it figures out how to take advantage of it.

At the time of publication, the author was long YHOO.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

2 of 2

Select the service that is right for you!

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!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • 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