This trend toward cloud computing has obvious advantages, but it isn’t without its drawbacks. Some companies, such as Microsoft Corporation (NASDAQ:MSFT) and Adobe Systems Incorporated (NASDAQ:ADBE), have angered their customers with their embrace of cloud technology.
Are these companies moving too quickly? Is cloud technology getting ahead of itself?
The move to embrace the cloud
Generally speaking, the concept of the cloud can be separated into two parts: cloud storage, and cloud computing.
Examples of the former include Apple Inc. (NASDAQ:AAPL)’s iCloud, Google Inc (NASDAQ:GOOG)‘s Drive, Microsoft’s Skydrive and Dropbox. Examples of the later include Google Documents, Microsoft Corporation (NASDAQ:MSFT)’s Office Web Apps, and salesforce.com, inc. (NYSE:CRM)’s various products.
Both offer tantalizing advantages — data stored on the cloud can be easily accessed from any Internet-connected device, while cloud-based applications can be fully utilized on even the weakest of hardware configurations.
But the cloud does come up short in several major ways. For example, a crashed server can render cloud-based applications and data temporarily inaccessible, and the loss of Internet means the cloud can’t be accessed at all.
Microsoft’s cloud box
Microsoft Corporation (NASDAQ:MSFT) has invested heavily in the cloud through its Azure technology. This has attracted some big name investors (like ValueAct), but could upset many of its customers.
Case in point, Microsoft Corporation (NASDAQ:MSFT) drew a lot of fire from the gaming community after it revealed that its next console, the Xbox One, would require a periodic Internet connection to function. Although the console does not require a constant connection (as some rumors had suggested), those without at least semi-regular Internet access will find the machine worthless.
But gamers upset with this periodic Internet connection check haven’t seen anything yet. Along with the new Xbox, Microsoft Corporation (NASDAQ:MSFT) announced that it has dramatically increased the number of servers it has available for cloud gaming.
Microsoft Corporation (NASDAQ:MSFT) will make these cloud servers available to game creators, who will — over time — opt to run parts of their games in the cloud. In turn, those games that are designed to be heavily reliant on these cloud servers will be wholly unplayable without an Internet connection.
Unfortunately, not every gamer has a steady Internet connection. And even if they do, the idea of being wholly reliant upon it is upsetting to many.
Adobe’s Creative Cloud debacle
Software maker Adobe Systems Incorporated (NASDAQ:ADBE) also angered its customers after it said it would be putting its entire focus behind Creative Cloud. Going forward, consumers can only get access to Adobe Systems Incorporated (NASDAQ:ADBE)’s Creative software suite by paying a monthly subscription fee and going online to verify their software regularly.
A Mashable article on the switch drew hundreds of comments, nearly all of them negative. But unlike Microsoft, most of the anger Adobe Systems Incorporated (NASDAQ:ADBE) has faced is aimed at its subscription model, rather than its Internet verification.
However, in general, cloud computing and subscriptions go hand-in-hand. After all, cloud software requires a server to be run on — a server that costs money to operate. Paying a one-time, upfront charge for lifetime access to a cloud solution is not a winning proposition for any business.
Google Fiber
As a company, Google Inc (NASDAQ:GOOG) and the cloud are virtually synonymous. With the exception of Android OS, all of Google’s products rely on the Internet.
Perhaps that’s why Google has become an Internet service provider. Currently, Google Fiber is only available in Kansas City, but is on its way to Houston. The search giant has received considerable media attention for Google Fiber, which offers insanely fast Internet at reasonable prices.
At the same time, Google Inc (NASDAQ:GOOG)’s research arm, Google X (known for its work on self-driving cars), is exploring ways to bring the Internet to every corner of the globe. Google’s Chairman, Eric Schmidt, has predicted that within 7 years, everyone on the planet would have Internet access.
Solving the challenges of the cloud
By forcing the cloud down the throats of its customers, companies like Microsoft Corporation (NASDAQ:MSFT) and Adobe Systems Incorporated (NASDAQ:ADBE) risk alienating them. That leaves the door open for rivals to take advantage. For its part, Google seems to understand the challenges it faces, and is actively working to help solve some of these problems.
There’s no stopping the move to cloud computing — too many companies are too invested. But those companies that do make the shift need to do so intelligently, or they could find themselves being punished for their ambition.
The article Xbox One, Creative Cloud Backlash Show Limits of Cloud Computing originally appeared on Fool.com and is written by Salvatore “Sam” Mattera.
Joe Kurtz has no position in any stocks mentioned. The Motley Fool recommends Adobe Systems and Google. The Motley Fool owns shares of Google and Microsoft. Salvatore “Sam” is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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