In this vein, standardization is key. Standardization will likely result in more and more devices becoming more apt to handle whatever users need – regardless of whether this will be viewed as replacing one’s PC or laptop.
As for IBM, there is a bright spot in that the company will likely see additional growth in the company’s cloud division, especially as product standardization moves forward. It is anticipated that overall competition will heat up among the makers of cloud server hardware, however.
Should computers even be improved?
While most tech giants realize where the market is headed in terms of cloud-based computing, there are those that still grapple with the decision of whether or not to improve on their more “traditional” computer systems.
Really, though, the majority of consumers who might purchase such upgrades are not part of higher-income households – meaning that although there may be a market for such hardware upgrades, the revenue that is generated is not likely to be worth the companies’ efforts.
Replacing the PC with mobile devices
Even with the vast array of tasks that can be performed using a mobile device, it is not likely that most people are going to completely ditch their desktop or laptop in lieu of solely using a tablet or smartphone. Even though companies like Apple want the market to believe that people can do just about anything imaginable with an iPhone, the truth is that while smartphones are quite good for some tasks they are equally bad for others.
For example, anyone who regularly produces content-laden documents or spreadsheets would not likely be doing so via their Blackberry or Galaxy tab. It just wouldn’t make much sense – nor would it be very convenient for the user.
Likewise, it is highly unlikely that mobile devices – regardless of their flexibility and convenience – will replace the business uses of full-fledged computer systems such as those used in hospitals and accounting firms.
To bring the point home, imagine for a moment the likelihood of large corporate spreadsheets being produced on one’s smartphone and I think you will get the overall picture. With this in mind, even though the PC market has essentially stagnated it doesn’t mean that it is history. Not by a long shot.
Cloud computing plays nice with others
Just like with most other industries, even when one product stagnates and another emerges there is still often room for both. If things go right, new ideas and technologies may even be able to enhance or build upon the old ones.
At the present time, because cloud computing is still relatively new it may be viewed as being the “next big thing.” And while this is true in large part, the fact is that such a new idea could drive additional sales of both smartphones and desktops. Tomorrow’s “new” technology revolution could very well be linked to today’s PC or desktop, but only time will truly be able to tell.
The article Is the Cloud the Next Big Thing? originally appeared on Fool.com and is written by Nauman Aly.
Nauman 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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