Greenberg: History Repeats Itself With the 'Cloud'

SAN DIEGO (TheStreet) -- I learned firsthand about the power of this thing called the "cloud" back in 2009 when I co-ran a small independent research firm.

As I wrote on CNBC.com Thursday, we needed encryption and we were using a cumbersome EMC (EMC) product for our small group of a few dozen clients. It was a powerful product, but the clients hated it because they had to install something on their computer. We hated it because between licenses and service costs, it was way too expensive and overkill for our small business. It was also technologically cumbersome.

Then I started searching for alternatives and I found WatchDox, a private company that did exactly what we needed at a fraction of the cost with none of the headaches. Our clients loved it, too.

That was when the light bulb went off in my head about this thing called "the cloud" -- and how disruptive it would and could be. Instead of having to "deploy" software, we just incorporated it in our product. At the time I figured WatchDox had discovered the secret sauce.

Since then, so has everybody else, and that could only mean one thing: The "cloud" would get discovered by Wall Street, and you know what that means: Exploit it for all its worth.

The cloud very quickly became all consuming. Suddenly everything was the cloud, and every even remotely cloud play was about to get the "can't turn down" knock-at-the-door from investment bankers eager to cash in on the trend.

You can read the full piece here.

-- Written by Herb Greenberg in San Diego

Follow @herbgreenberg

Herb Greenberg, editor of Herb Greenberg's Reality Check, is a contributor to CNBC. He does not own shares, short or trade shares in an individual corporate security. He can be reached at herbonthestreet@thestreet.com.

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