Here it is, the iCloud, this is the future of Apple….  It was announced on 6 June 2011 and released yesterday.

iCloud is supposed to be more than a simple storage service.  In addition to the diversification of Apple’s revenue stream and services, I believe iCloud is meant to be the platform for potential future streaming services.

Apple moved in progression from the Digital Hub to a device-centric approach and finally to a remote location-based model.

Through the Digital Hub, all devices were connected to the Mac.  The Mac was the central storage place and the main access point for content.  The Apple business model was mainly centered on hardware and software.

The iPhone changed that.  The strategy switched to a device-enabled platform with iTunes Music Store, iApp Store, App Store, iBook Store, allowing customers to purchase content directly on the go and access content from both portable devices and fixed computers.

The iCloud represents the next evolution as the content is now supposed to be stored in a central location and accessible from multiple devices at the same time.  This is, I believe, the future of Apple and the next step in Steve’s vision.

From a technical point of view, customers who want to use iCloud must take the following 5 steps :

1) Migrate to iTunes 5.0

2) Update the iPhone and iPad software to IOS5

3) Upgrade the Mac OS to  Mac OS X 10.7.2

4) Switch from the existing MobileMe account to iCloud

The upgrade process brings with it mixed feelings of peace of mind and frustration :

Peace of mind because it is very straightforward.  Your Mac will automatically prompt you to upgrade your system.  As soon as you connect your iPhone / iPad to iTunes, it will prompt you to upgrade.  Once this is done, you are then prompted to move your content from MobileMe to iCloud.

Frustration because it took a looooong time to download both the Mac OS X and the IOS5 softwares and the servers were overloaded and failed to migrate content from MobileMe to iCloud.

This morning, the servers were back on track and I finally succeeded in completing the migration. So what is my first impression?

Overall, mmm, so so…  There are no major differences in the way I handle the content and manage my computer. However, I have to say that with the migration, the notification system on the iPhone is a real breeze and totally  worth it.  It is finally the end of the intrusive notifications as they are regrouped in one center and automatically accessible for quick replies.  Emails, calendars, news, sms, Facebook posts and tweets are gathered in one place.

To be honest, I am not sure about iCloud yet.  Let’s face it, MobileMe was probably the less successful product of Apple in the past year (with Apple TV).  It worked but it did not translate Steve’s vision of simplicity, interactivity and ease of use.  Bugs overshadowed the potential of MobileMe in the synchronization between contacts, address books, calendars.  I never really used the storage feature of MobileMe and as a loyal Apple customer, it frustrated me.

For the past 10 years, I have paid $99 annually to Apple to enjoy the MobileMe services.  And now, the services are free… What does it mean for users like me?  Will I be rewarded for sponsoring MobileMe for an 80% service? From the iCloud page, MobileMe users will receive a free storage upgrade of 5GB, but this is only for the first year.  I wish it could be free for the long-term.

Moving forward however, I am convinced that iCloud is about more than just storage.  After the distribution of hardware, selling of content through iTunes, the iCloud is most likely the next step in terms of diversification of revenue streams.  iCloud will most probably allow the company to develop a new revenue stream based on a subscription model.

This would be a first in the history of Apple since the company did not believe in this business model in the past.  I agree with this because many years ago, even though it was available from a purely technological point of view, it just did not make sense.  Customers were not ready for it, the sharing of technology was neither stable nor easy to use, the network speed was too slow and both content and devices were not available.

Now, in 2011, this has all changed.  There is a new generation that buys content through digital instead of stores.  Everyone has a digital phone, fibre optics allow 100GB lines and digital is an essential part of our lives.  I personally use new services such as Spotify and I love it !  However, the way to handle content from a brand is changing and the way for me, as a user to enjoy music, for example, evolves with my objective.  If I want variety, I switch on Spotify at home or on-the-go.  If I want to have quality sound, I put on a CD.  If I want to listen to music while in a plane, I use my iPod.  This can get messy and you might end up with  content in multiple places and different formats.  I hope this will be harmonized in time to come.

It will be interesting to see how iCloud develops and what kind of services Apple will roll out.  What’s for certain is there will be be an impact in the way we marketeers consider our strategies.

Tags: Apple, digital hub, icloud, spottily

This entry was posted on Friday, October 14th, 2011 at 12:46 pm and is filed under Brand, Digital. You can leave a response, or trackback from your own site.