Analyst: Apple Data Center to offer Streaming, Cloud Storage

| Apple Stock Watch

Following a meeting with Apple executives, Bernstein Research analyst Toni Sacconaghi thinks he knows what’s in store for the company’s still unfinished North Carolina data center: “differentiated services,” such as video and music streaming, and cloud-based data storage. The mystery data center was originally expected to go online before the end of 2010, but now is projected for a spring 2011 launch.

According to Mr. Sacconaghi, Apple has a laundry list of services planned for the data center, including more robust product downloads, free cloud-based storage, music and video streaming, and voice-based navigation services.

Apple, North Carolina, and Data CentersApple’s North Carolina data center should open this spring

Assuming Mr. Sacconaghi is right, Apple’s plans for its new data center are hefty. He expects Apple will be able to use the facility to change how the ebook, video and online advertising markets work, just as it did for music downloads and mobile apps.

The center may also be the hub of a new cloud-based data synchronization system and free online storage service, a low-cost music streaming service center, and a video streaming service that competes with Netflix. Mr. Sacconaghi even speculates that Apple may buy Netflix for its movie and TV show streaming features, according to Fortune.

As if all of those services aren’t enough to keep the data center busy, he thinks Apple may be planning to leverage its PlaceBase and Siri purchases to run its own voice-based navigation service, too.

Apple hasn’t publicly confirmed, or even discussed, its plans for the North Carolina data center. If Mr. Sacconaghi did manage to accurately interpret Apple’s plans for the facility, it will likely be busy as soon as it officially opens.

Apple’s stock is currently trading at US$341.05, up 1.86 (0.55%).

Comments

Constable Odo

As usual for Apple analysts. Fairly lofty expectations based on pure speculation.  First saying Apple will compete against Netflix and then saying Apple might buy Netflix in the same sentence is just throwing out guesses.  Chances are, if Apple had any intentions of buying Netflix it would have done so while NFLX share price was relatively low instead of where it is now.  Apple badly needs Netflix but maybe it has a better solution ahead.

My puzzlement is that this data center is rather huge, but a second facility could double capacity which would be a massive jump in storage.  One facility for OSX devices and one for iOS devices?

Lee Dronick

Great graphic with the Apple logo on the North Carolina state flag.

mhikl

The graphics on TMO are great. This one caught my eye too, Sir H. The mind of Apple is a difficult forecast. Mine, however, is usually, predictably confused. What Apple is going to do with this monster centre may be a sox blower-offer. I can hardly wait. The speech thing is intriguing. I can’t see Apple not interested in speech and text recognition.

Lee Dronick

The graphics on TMO are great. This one caught my eye too

I might have put the logo in place of the white star on the hoist, the left part of the flag with the blue background. It would have been more subtle though and people may not have noticed it. Then maybe put an Apple bite (bight?) on the right edge, the fly.

Vexillologically Yours smile

What Apple is going to do with this monster centre may be a sox blower-offer. I can hardly wait. The speech thing is intriguing. I can?t see Apple not interested in speech and text recognition.

Yeah the competition will probably be saying “Now why didn’t we think of that.”

Voice recognition has been around for a while, but I never seemed have much luck with it.

Watch for an announcement about this data center in conjunction with iPhone 5 or the next OSX release. Summer more so than spring.

d'monder

The mystery data center was originally expected to go online before the end of 2010, but now is projected for a spring 2011 launch.

Whatever they do, just get it online before it’s obsolete.

If with Apple’s profit margins, something like this could be a costly “hobby” if they aren’t deadly serious about it.

Magic Word: growth

d'monder

if with = even with.  Sigh.

mhikl

I might have put the logo in place of the white star on the hoist, the left part of the flag with the blue background.

You and geoduck today. Critics!
I’m dusting off my keyboard for the man in blue, Constable Odo!

Vexillologically! Beautiful. The English language shall never die whilst wordsmiths furnish their thoughts in play.
Is this an original? Too cool. I’m claimin’ it.

mhikl

Con

As usual for Apple analysts. Fairly lofty expectations based on pure speculation.  . . .Chances are, if Apple had any intentions of buying Netflix it would have done so . . . .? Apple badly needs Netflix but maybe it has a better solution ahead.

CO, you are quite quixotic* at times. You are not an easy read. First you insult Applefans, then you come across as an Applefan, then you predict woa, then joy, then despair and then predict up a hailstorm. Is there a shrink involved?

Interesting reads, though. I just take a deep breath are charge to the chore.

What I find curious, and I am not necessarily accusing you of it as intended, is veiled attacks on Applefans at the TMO and being accused in whole (or insinuated in part) of being blind to Apple’s shortcoming. Such an idea may come from skim reading. Skimming should be left to the boudoir IMuHO). For the most part I read pretty carefully and in this forum Apple has its shorts pulled down often and for good purpose when paddling is deserved.

At times I do have a wee bit trouble with your predictions and facts. Did you ever read my response to one of your observations at http://www.macobserver.com/tmo/article/aapl_dips_to_332_amidst_broad_selloff/

Mind you, keeping one on his guard is a stratagem that works in many games. -)

* (maybe the romantic side of quixotic)

Lee Dronick

Sir Harry Flashman said:I might have put the logo in place of the white star on the hoist, the left part of the flag with the blue background.
You and geoduck today. Critics!
I?m dusting off my keyboard for the man in blue, Constable Odo!

Vexillologically! Beautiful. The English language shall never die whilst wordsmiths furnish their thoughts in play.
Is this an original? Too cool. I?m claimin? it.

I am kind of into flags. Knowledge and correct use of them was a big part of my rating when I was in the Navy and of course I am visually orientated (and no pulled app can cure that). Also way back when I was in graphic arts school I had to recreate the US Flag, do research on it and all of that.

I don’t know if I coined vexillologically or not, but it is flagged by my spell checker.

“The English language shall never die whilst wordsmiths furnish their thoughts in play.” Now that is beautiful.

I can tie wordplay and this data center story together with a recent experience. Last evening we had our San Diego Shakespeare Society monthly reading. We did The Tempest. Most of us do not know the plays by heart so we read from books or scripts. However, I downloaded a copy of the play from the iBook Store and read it on my iPad.

mhikl

Oh Shakespeare pure of heart
Let thine ears hear my shout
Death be gone from such as thee
The world a better place for Sir Henry!

For Steve the joys come much
For thee we think and pray about
Raging cancers canst be stayed?
A raging curse on Puck’s sad rout!

Lee Dronick

Oh Shakespeare pure of heart
Let thine ears hear my shout
Death be gone from such as thee
The world a better place for Sir Henry!

For Steve the joys come much
For thee we think and pray about
Raging cancers canst be stayed?
A raging curse on Puck?s sad rout!

Excellent!

irriserv

I just can’t understand why Apple wants to get into this business it’s so low margin if you are lucky.  They should just out source this stuff to LVLT and be done with it.

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