Apple well positioned for success cloud computing era thanks to consumer trust

MacMall 96 Hour Apple Sale“If we are going to use the Internet to store our photographs, our home videos, our digital libraries, our school work, our medical records and our personal information, then we better know who controls our precious data. The only way consumers will trust putting that information online is if they trust the custodian,” Jason Schwarz, an analyst at Lone Peak Asset Management, writes for TheStreet.com.

“For Apple or any other company to achieve success in the era of cloud computing, it must command consumer trust,” Schwarz writes. “Apple already has a competitive advantage because of its success with iTunes.”

Schwarz writes, “For the past 10 years, more than 100 million consumers have developed a relationship with Apple through the iTunes platform. For many, this was their first experience buying products (music) online with a credit card. If Apple didn’t execute music sales and the subsequent storage of that music flawlessly, it would not have been given a second chance.”

“Confidence is high that Apple will consistently come out with up-to-date operating systems, software and hardware that meets modern demands… A total of 99% of respondents to a RBC/IQ ChangeWave survey in August 2009 said they were satisfied with their iPhone 3GS, with 82% of those ‘very satisfied,'” Schwarz reports. “Similarly, 94% of iPhone 3GS buyers said the product met or exceeded their expectations.”

Full article here.

18 Comments

  1. I agree that you should have backup in the home but really important data should be stored off site as well either online or on disc. A fire or theft could cause you to lose everything.

  2. @Steveeee
    That’s right, but the way the author wrote the story, the implication is that Apple stores the music you purchase from the iTunes Store in the cloud. Every try to re-download a song you’ve purchased? Won’t happen. Audible.com is actually better at this. I can go to my Library at Audible.com and re-download any of the books I’ve purchased over the years. That’s a better example of the Cloud working than the iTunes Store.

  3. Perhaps the author is implying that the music industry is confident entrusting Apple’s system to safeguard their content, as is academia, the motion picture industry, et. al., and to provide the comfort and security for its consumers.

    In other words, the server side is a lock and once open for business, we can expect the same level of confidence from Apple’s North Carolina facility.

  4. I think the trust factor has more to do with iTMS uptime, personal information staying private, easy access and great customer service.

    While MobileMe may have had a few hiccups now and again, there isn’t any online service that can claim otherwise. And since its debut, MobileMe has made huge strides in stability and services offered, especially if you happen to own an iPhone as well. I’ve had to use Fine My iPhone a few times already and it alone is worth the yearly membership!

  5. Launches often include glitches. So what’s new? Jobs got involved with the MobileMe glitch and so Apple made generous compensation like no other company would. MM is evolving and improving and it is a good sucess story for building other cloud services since the frameworks are now sound and huge infrastructure investments are under way.
    Some people are just terminally cynical about good companies.
    Good thing they impress no one but themselves …. sometimes. Mostly they just know that they are whingeing losers and liars.

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