Consumers not ready to embrace cloud-based solution
I've long been skeptical about cloud-based solutions, at least solutions that are totally cloud-based. Apparently, I'm not the only one.
The industry is rapidly moving content solutions to the cloud, but consumer interest is not keeping pace, as less than 30% of U.S. broadband households find the digital locker an attractive alternative for music or video, according to Parks Associates (http://www.parksassociates.com).
A new report from the international research firm, highlights the challenges within the industry, including device and format interoperability, consumer awareness, and security and delivery issues. Market fragmentation is also a major inhibitor, and efforts including Digital Entertainment Content Ecosystem's (DECE) UltraViolet initiative and Disney's Studio All Access aim to overcome these barriers.
"In terms of rich media, consumers want everything, everywhere, and companies are actively seeking ways to deliver," says Laura Allen Phillips, research analyst, Parks Associates. "Netflix and Verizon's Flexview offer cloud video services, and cloud-based music solutions include MOG, RealNetworks Unifi, and mSpot. However, taken as a whole, this market is fragmented, leaving consumers to cobble solutions together. Industry growth and consumer adoption rates of cloud-based services will rely on how effectively market players address this issue as well as other challenges."
I think there's room for cloud-based solutions -- and this is an area that will definitely grow. However, I still maintain that it will be a complement to, not a replacement for, traditional storage and back-up methods.
-- Dennis Sellers