The cloud computing will be the buzzword in 2012 as it would spread to mobile devices, mobile advertising, and wireless equipment.
Apple has already launched its iCloud service and would be followed by other rivals. In other words, the cloud could be the new operating system.
Following are Jefferies top 10 cloud computing predictions and implications:
Any platform without integrated cloud services will be commoditized
In order to be a platform, an OS will need to have a cloud directly tied into it. This means that firms that do not have a cloud strategy will invariably be faced with longer term differentiation and ultimately margin issues as a non-differentiated platform will face commoditization pressures.
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Deluge of cloud functions, apps, and content will require a simple user interface
Much of the value of the cloud will be lost if it is not easy to navigate. The brokerage believes usability will be a deciding differentiator and as important as the list of available functions.
Future applications will automatically optimize based on platform, device, location, and usage habits
Apps will need to be written and architected to support auto-recognition and auto-optimization features. Especially in a mobile context, the ability to intelligently turn features on and off while optimizing for screen or use case will be critical.
Devices will become more mobile and more powerful
In contrast to visions of weakly-powered thin clients with the heavy processing power in the cloud, Jefferies believe that user interface and offline capabilities will require mobile devices to contain a significant amount of processing power. The brokerage sees the main usage and value add for the cloud will be mobile.
Content library will be very important, especially early on
Jefferies believe that at this early stage pulling together the largest and/or most diversified library will be a key means by which platform competitors hope to build critical mass.
Developers will be critical