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

The Cloud in Your Hand

What this means for investors is that, over time, you get a rotation away from cloud specialists toward enterprise generalists. There are huge opportunities in re-writing client-server applications to run on cloud stacks, in building and managing a new class of smaller, cloud-compatible data centers. This is the kind of work in which companies including IBM (IBM) and HP have specialized for decades.

The cloud is something you can buy, rent or build yourself. Everyone in the computing space now seems to understand this. The whole industry is adapting itself to this new reality. Like the revolutions that came before it, this is crushing margins and crushing whole sectors of the old industry.

Anyone who is specializing in the old enterprise space, with its client-server architectures and high-end servers, is vulnerable to the new era of cloud as product as well as service. In the end, it all becomes software, software that runs on standardized hardware. Networking becomes software, storage becomes software, computing becomes software.

I want to end this close to where I began it, with Piston Cloud. Everything in the cloud space is evolving, as previous generations of computing did, toward something you can hold in your hand. Know this trend, and evaluate your cloud technology portfolio based on it.

At the time of publication, the author was long IBM, YHOO and GOOG.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
2 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 $95.32 1.80%
FB $117.67 -0.76%
GOOG $695.30 -0.42%
YHOO $36.18 -0.96%
TSLA $234.27 -3.10%


Chart of I:DJI
DOW 17,771.66 -119.50 -0.67%
S&P 500 2,063.80 -17.63 -0.85%
NASDAQ 4,773.2230 -44.3710 -0.92%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs