New Jersey-based data management company CommVault Systems ( CVLT) operates in a very hot sector, cloud computing. CommVault Systems has strategic relationships with other publically held companies such as Dell ( DELL), Hewlett-Packard ( HPQ), Microsoft (MSFT), Network Appliances ( NTAP), VMware ( VMW) and Oracle ( ORCL). Cloud computing is all the rage right now, but it will deliver the same disappointments as did prior promising technologies such as dotcoms in the 1990s, solar energy, nano tech and VOIP. Cloud computing stocks will likely surge and then crater -- and some have already begun to do so, such as Saleforce.com ( CRM), one of those high-PEG stocks I said to avoid last summer. Competition in this space will become even fiercer, forcing pricing and margins to collapse. I have written before to be cautious of stocks with very high levels of realized volatility. CommVault Systems has a one-year historical volatility of 50.59. This is more than twice that of the Power Shares QQQ Trust ( QQQ), a tech-heavy indexed ETF.