toggle

AAPL Stock: 101.07 ( + 0.11 )

Printed from http://www.macnn.com

Apple takes control of iCloud.com; analysts react

updated 12:45 am EDT, Thu June 2, 2011

Sterne Agee reinterates 'Buy' rating at news

Back in April, Swedish firm Xcerion changed the name of their cloud-storage service (and its website) from iCloud to CloudMe, with reports that Apple had bought the domain from the company for a rumored $4.5 million as part of the buildup to Monday's expected announcement of iCloud services. Today, the administrative records in the WHOIS database confirm that Apple has taken control of the name, even though it currently still redirects to Xcerion's CloudMe service.

Normally the company keeps such announcements under wraps until the formal introduction, but Apple surprised markets on Tuesday by pre-announcing that the Worldwide Developer's Conference (WWDC) keynote would feature CEO Steve Jobs, as well as bluntly defining the rumored iCloud as the company's "upcoming cloud services offering," along with the expected focus on iOS 5 and Mac OS X Lion.

Analyst Shaw Wu of Sterne Agee believes the unusual candor suggests that Apple will be "aggressive" in its entrance to the increasingly-crowded cloud-services market, and has advantages (such as rumored deals with music labels and potentially other content providers) that will give it a significant advantage over companies who have come to market with "media locker" services ahead of Apple, including Google and Amazon.

Other rumors have the iCloud service offering a range of options not available from competitors, including permission to substitute higher-quality copies of lower-bitrate songs stored by users (possibly regardless of source) and stream them to mobile devices, along with automatically backing up purchased songs without users having to first upload them from their own libraries. Such convenience may justify any fee Apple could charge for the service, if any -- rumors and speculation have swung back and forth on pricing, with the current wisdom being that some iCloud services may be offered for free (at least on a basic level) while others will cost -- though none of the details in such reports can be confirmed.

Wu and other analysts believe the combination of iOS 5, Mac OS X Lion and iCloud's offerings could strengthen Apple's position among digital media consumers and increase the "halo effect" of the devices back to Apple's iTunes stores. Computerworld quotes analyst Ezra Gottheil of Technology Business Research as saying that Apple has felt that MobileMe (in its various incarnations) was ahead of its time but under-delivered on value, and hope iCloud will show the benefits of lessons learned from over a decade of offering cloud-based storage and other internet services.

The iCloud service and other details of Apple's plans for iOS and Mac OS X will be unveiled beginning at 10 a.m. PT next Monday during the WWDC keynote. Share of Apple's stock jumped significantly after the pre-announcement press release, and have remained elevated -- reaching $352 earlier Wednesday before dropping slightly.






by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

  1. bobolicious

    Joined: Dec 1969

    +1

    ode to mac.com

    I still have a 'free' email address that I would need to pay to use ?

    I didn't even consider mobile.me, and anything cloud reminds me of the big blue 1984 ad, only on the receiving end...

  1. Grendelmon

    Joined: Dec 1969

    -2

    ?

    Slow news day?

  1. testudo

    Joined: Dec 1969

    -2

    yeah but...

    Rumors, of course rumors

    Other rumors have the iCloud service offering a range of options not available from competitors,


    Well duh. What fun is it to make up stuff that other people have.

    including permission to substitute higher-quality copies of lower-bitrate songs stored by users (possibly regardless of source) and stream them to mobile devices,

    Except streaming demands actually lend itself to lower bitrates. Esp. over data plans.

    along with automatically backing up purchased songs without users having to first upload them from their own libraries.

    That's not 'backing up'. That's "We have a record of the songs you purchased, so you can download them again". You know, like with apps and the app store. Not exactly a big deal. And what are users supposed to do, try to figure out which music they didn't buy to know what needs to be backed up?

    Such convenience may justify any fee Apple could charge for the service, if any

    Uh, no it doesn't. I can see such 'convenience' being worth maybe $100 a year (as part of .Mac), but not 'any' price. How many would think $50 a month would be justified?

    -- rumors and speculation have swung back and forth on pricing, with the current wisdom being that some iCloud services may be offered for free (at least on a basic level) while others will cost --

    Rumors AND speculation? Isn't that one in the same thing? Well, I guess not, since a rumor is someone speculating but stating it in a way that makes it sound like they know what they're talking about.

    though none of the details in such reports can be confirmed.

    That's why they're called rumors!

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

MacNN Sponsor

Recent Reviews

Patriot Supersonic Rage XT 128GB USB drive

USB thumb drives are getting larger by the day, their growth speeding along with the availability and expansion of memory chips. But h ...

Autodesk Smoke 2015

Since May of this year, Autodesk has been shipping the highly anticipated update to its high-end post-production video editing suite, ...

Crucial MX100 256GB SATA-3 SSD

While the price-per-gigabyte ratio for magnetic platter-based hard drives can't be beat, the speed that a SSD brings to the table for ...

toggle

Most Commented