The effect of netbooks and the cloud on computing
In his column at PCMag, industry analyst Tim Bajarin writes that netbooks and the cloud are impacting computing in a serious way:
The lower cost and increased performance in these smaller notebooks, or netbooks, could eventually drive growth in the PC industry and if tied to the cloud- and Web-based apps, they, potentially, deliver a computing model that makes it tough for any PC maker to be profitable just selling PCs. In fact, it is dawning on many of these manufacturers that having a complete hardware, software, cloud computing, and service approach may the only way they can wring profits out of PCs in the future.
There is something that could be good news for PC vendors: We’re seeing many households use a powerful desktop or large laptop in their kitchen or den as their overall home information system and family server. They’re using the system for general tasks, such as checking news, weather, and e-mail when near it. They may also be using a second PC, or laptop, for their more personalized computing experiences. In fact, we are seeing a lot of netbooks being used in this exact scenario. This is an area where PC makers can excel.
The impact of netbooks and the cloud on the PC industry will eventually be dramatic. At the very least, it will force PC vendors to deliver PCs that are tied closely to the cloud and cloud-based apps and provide special services if they are going to make any money, since it will not be coming from the hardware. Those vendors that are, for the most part, just box movers will be challenged to even stay around. In fact, I see a serious shakeout in PC players and would not be surprised if three or four of the top 10 don’t even exist 3 years from now.
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