Apple's iCloud and what it means for wireless data service

 

 

 

 

 

 

 

 

 

 

Apple's new iCloud services announced at the World Wide Developer Conference in San Francisco today will put everything from mobile apps to digital pictures to music in the "cloud," where users can easily store and access them. But what will this mean for your wireless data bill?

Apple CEO Steve Jobs unveiled the iCloud service, which acts as a digital hub that will store and replicate content so that it can be shared among multiple iOS devices, such as iPhones, iPod Touches, and iPads.
"Now the (digital) hub is in the cloud," Jobs said during the keynote presentation, according to CNET's live blog. "If you get something on your iPhone, like a picture, it goes up to the cloud, and gets pushed down to the other devices automatically."
What this means for consumers is that they'll no longer have to connect their iOS devices to a computer to back up information or sync their music. They also won't have to connect their devices to a computer for software updates. Their iTunes music collection, photos taken on their iOS devices, videos viewed on those devices, iBooks, e-mail, calendar information, and more will all be stored in the Apple iCloud so that users can access them on any iOS device.
Unlike other cloud-based services that may require users to manually upload music, Jobs said that Apple has automated the process to make it easy.
It all sounds great for people with iOS devices, who want access to all their content on any device. But how will all this content travel between the iPhone or iPad and the iCloud? Will this put a big strain on carrier networks, and cost consumers more money on their data plans?
Daily updates could indeed put a strain on already struggling cellular networks. But Apple seems prepared to mitigate this problem by forcing some of the data-intensive activities to be done over Wi-Fi instead of over a carrier's cellular network.
This is especially important given that many iPhone users may not have an unlimited data plan from AT&T. Verizon Wireless, which began selling the iPhone 4 this year, has also said it plans to get rid of its unlimited data plan and move to a tiered offering.
Experts believe that with Apple's use of Wi-Fi, plus the low-bandwidth nature of some of the updates, it shouldn't be a problem for most consumers. For one, much of the data that will be transferred between devices will be contacts, e-mails, calendar updates, and other text-based data that doesn't gobble up a lot of bandwidth. What's more, when devices are synched, they'll be updating only new information.
Secondly, software updates and major data transfers will likely be reserved for Wi-Fi only. Forrester analyst Charlie Golvin was at the WWDC event today, and he said Apple's daily updates of iOS devices will happen over Wi-Fi only. And the bigger software updates, which will also happen automatically from time to time, will also happen over Wi-Fi and will occur only when devices are plugged in to an electrical source. This is important, because it means the software updates won't drain the battery. Additionally, iTunes updates and syncing will also happen only over Wi-Fi.
What happens when Wi-Fi is not available? Apple didn't mention that. And Golvin said it's hard to say whether Apple will make it possible to do some of these more data intensive transfers over 3G, or in the future, 4G wireless networks.
Other experts speculate that Apple will give consumers a choice in the setting menu how they access the cloud-based content and backups.
"There are several ways that Apple could manage data usage," said Ross Rubin, an analyst with NPD Group. "For example, it wouldn't be surprising to see Apple uploading photos at a lower resolution when on a bandwidth constrained network."
Michael Gartenberg, an analyst with Gartner, said Apple already requires that certain apps that are too large be downloaded via Wi-Fi. And he said he expects the company to give consumers some choice in how they set up their data usage.
"They may give you the option to load your pictures now or to queue them until you get to a Wi-Fi hot spot," he said. "And you'll likely have the option to turn off the updates."
The new iCloud services will be available this fall. So expect Apple to discuss more details about how the service works as the launch date nears.

Windows Phone Mango to deliver new SkyDrive features

Perhaps in response to Apple's little iCloud announcement yesterday, Microsoft posted new details about a couple of features coming to its cloud-based SkyDrive storage service with the Windows Phone Mango update.
This includes: The option to share photos stored on SkyDrive via e-mail, text, and IM and the ability to upload videos to the cloud. Previously, Microsoft revealed that the Mango update would also bring Office document storage and sharing.
Based on the comments on the Windows Phone and Windows Live blogs, some users are not satisfied and want such features as developer access to a SkyDrive API, the option to expand storage (currently capped at 25GB), and file system access. However, Microsoft says Mango will offer more than 500 new features, so perhaps there's more in store for SkyDrive.
Windows Phone Mango is expected to be rolled out to devices in the fall.

5 Productivity Boosters in OS X Lion

While iOS 5 looks like a bit of a snooze, today's announcement of OS X Lion looks like a productivity geek's playland. Better navigation throughout the OS, improved file management, and cool sharing features should make Lion well worth its $30 price tag. Here are five ways it'll make Mac users more efficient.

Mission Control

Mission Control will give OS X Lion users a single screen to view everything happening on their Mac.In the current Mac OS (and the last few versions, for that matter), Dashboard was sort of a wasted feature that placed a bunch of widgets on a screen hardly anyone ever accessed. If I had a quarter for every time a Mac user asked me what that little "thermometer" icon on their keyboard was for, it might just pay for my Lion upgrade. In Lion, the Dashboard screen has been integrated with Exposé and Spaces into a single interface called Mission Control.
The Mission Control screen brings all of your running apps together into one view, so you can see everything that's going on at once. To get there, you do a three-finger upward swipe on the keyboard. (I'm assuming the existing Exposé keyboard button will launch this, too, since the icon looks the same.) So one swipe shows you everything, and one tap takes you to the app you want. Not a bad little time saver to start with.
I'm less enthused about Launchpad, the new app menu that completely overtakes your screen. This looks like more like a bit self-indulgent move to impose the iOS interface on OS X users than a genuine attempt at making the OS more functional. But we'll see.

Versions & Auto Save

I've always preferred apps to autosave my work as I go. As infrequent as power outages and crashes are, when they do happen, they can take hours of work with them. And while you may be diligent about regularly saving your work throughout the day, I tend to forget. So I'm looking forward to Auto Save adding this feature throughout the operating system.
At the same time, I'm taking a wait-and-see stance on Versions. File versioning is awesome when you need to recover something you've lost, but I have a feeling Versions is going to blow through hard drive space like nobody's business. (Time Machine certainly does.) To a 128GB MacBook Air user like me, Versions sounds like potential trouble

Resume

In Lion, all your apps will reopen to the same document or page that you were on when you closed them whenever you restart your Mac. Good.

Full-Screen Apps

Regular readers of this blog know I love me some distraction-free apps. Lion's full-screen apps look like a great move in that direction.

AirDrop

To share files between OS X Lion users on your Wi-Fi network, you just find them on the network via AirDrop and drag the files to their picture. No more sneakernet.
OS X Lion will ship via the Mac App Store in July for $30. You can bet I'll post a follow-up to this post once I have a chance to reality-check my early assumptions.

Apple's free iCloud will automatically sync data from Macs, PCs, iOS devices

The newly announced iCloud service is expected to further drive sales of iOS devices as users become even more tied in to Apple's increasingly proprietary ecosystem, analysts on Wall Street believe.
Some of the most prominent analysts offered their take on iCloud, iOS 5 and Mac OS X 10.7 Lion following Monday's keynote presentation at the annual Worldwide Developers Conference. Most were wowed by iCloud, viewing it as an important component of Apple's product strategy.

Piper Jaffray

Analyst Gene Munster said Apple is increasing the likelihood that consumers will buy multiple devices. A central drive for Apple will be the free iCloud service, which will automatically share contacts, calendars, messages, photos, apps and music purchased on iTunes.

Going even further, Apple has made it easier for users to cut the cord to their PC. The new iOS 5 mobile operating system will make it possible for users to operate their iPhone or iPad without tethering to a computer and syncing with iTunes.

Apple's decision to make iCloud free will eliminate about 0.3 percent of Apple's revenue in 2011, Munster believes. By his calculations, that number will be easily offset by higher sales of devices.

Munster's overweight rating on AAPL stock and $554 price target also do not take into account pricing on Lion, so in his view the low $29.99 cost of the Mac OS upgrade will not have an impact on his numbers. He also noted that users who make the upgrade to Lion will be more likely to stick with the Mac platform.Gleacher & Company
iCloud will increase the "stickiness" of the Apple ecosystem, analyst Brian Marshall believes. And while the service will be a financial benefit for Apple in the long run, he does not see it moving the company's "financial needle" in the near future.

Relative to the previews of iOS 5 and Lion, Marshall believes iCloud stole the show, as he called the service "brimming with functionality." He also believes iCloud "will likely far exceed community expectations" with its list of features, including wireless sync, documents in the cloud, and iTunes in the Cloud.

Gleacher & Company has reiterated its "buy" rating and price target of $450 for AAPL stock. Marshall said the key risk for the company remains the health of Chief Executive Steve Jobs, and noted his physical appearance took "an unfortunate turn for the worse" since he last appeared at the iPad 2 introduction in March. "We wish him a full recovery," Marshall wrote.RBC Capital Markets
iCloud positions Apple for a "post-PC" world, and is a "possible game changer" for the company, analyst Mike Abramsky wrote in his note to investors. Apple's vision with a closed ecosystem of hardware, services, software and applications could help drive the company's next leg of growth and valuation against the competing Google Android platform, he believes.

"By 'cutting the cord' to the pC, Apple may expand its addressable market by 4x, addressing the (about 3 billion) handset users who have a phone -- but not a PC," he wrote. "We believe we may see new devices in time, based off iCloud services."

Abramsky was also impressed by iOS 5 and Lion, which he said reflect Apple's "trademark user experience," highlighting convenience, simplicity and discoverability. The new products and services unveiled by Apple on Monday "have the potential to significantly expand and defend Apple's franchise," he said.

RBC Capital Markets has reiterated its outperform rating for AAPL stock, as well as its price target of $450.Ticonderoga Securities
Analyst Brian White believes iCloud, Lion and iOS 5 further enhance Apple's ecosystem, and he was also encouraged by the appearance of Jobs at Monday's keynote. He believes the biggest announcement was iTunes in the Cloud.

"Clearly, the most anticipated app for iCloud was bringing iTunes into the cloud, allowing consumers to push already purchased songs into the cloud across Apple devices, while automatically downloading future song purchases across devices," he wrote.

White has reiterated his buy rating and 12-month price target of $612 for AAPL stock.

Deutsche Bank

"iCloud hits take-off velocity," analyst Chris Whitmore's note to investors reads. Like others, he didn't change his financial outlook for Apple based on iCloud, but he believes in time the service will attract new users and developers.

"We believe iCloud will greatly increase the stickiness of the Apple platform, particularly for multi-device iPad/iPhone/Mac owners, and further differentiate the AAPL platform in terms of scale and size," he said.

Whitmore has maintained a buy rating and price target of $450 for AAPL stock.J.P. Morgan Research
Analyst Mark Moskowitz was less impressed than his peers, declaring there was "no wow factor at WWDC." Still, he believes iCloud and other improvements will likely keep Apple ahead of its competitors.

"While WWDC did not introduce a major, new product category or refresh, we think there were plenty of incremental building blocks for driving above-peer revenue growth," he said. "Of note, the iCloud service stands to further cement Apple's role in constructing a 'way of life' for the user."

Moskowitz and J.P. Morgan have maintained an "overweight" rating for AAPL stock, with a price target of $450.

JMP Securities

Analyst Alex Gauna is less bullish about AAPL stock than others on Wall Street, and he came away unimpressed with Monday's keynote, declaring it "cloudier, with less lightning bolts, than normal." He also said the presentation had "no real surprises," and was merely an evolutionary step for Apple.

Gauna noted that the company's stock dropped more than 1.5 percent in response to the keynote, and he said he agreed with the reaction from investors. He was particularly disappointed by the lack of new hardware, which he said is needed to "stem the tide of faster Android adoption, or to make enterprise inroads."

Still, Gauna said that Lion and iOS 5 updates are "likely to please the Apple faithful and keep Apple products best in class with regard to intuitiveness and usability." He also said iCloud should maintain the dominance of iTunes.

Gauna remains concerned about Apple's "ability to execute without a healthy CEO," and as such has reiterated a "Market Perform" rating for AAPL stock, without a set target price.