Barron's Expects Apple (AAPL), Google (GOOG) To Benefit From Cloud Computing

‘Cloud Computing’ is turning out to be the latest buzzword in tech world. According to Barron's Jerry Kennelly, Chief Executive Officer of Riverbed Technology (NASDAQ: RVBD) who has said, “If you don’t have a cloud story, you better get one”.

His tech firm is expected to reap the benefits of cloud computing. Various people have defined cloud computing in different ways. While the majority of the tech world seems to be positively excited by the concept, cloud computing has attracted its fair share of sniggers as well. Oracle (NASDAQ: ORCL) CEO Larry Ellison has been quoted as saying, “cloud computing is the future of all computing, but more impressively, it is the present of all computing and the past of all computing...Everything is cloud computing."

According to David Readerman, a senior investment analyst with Denver-based Marsico Capital Management, investors need to identify the subsector within the cloud computing space. They might be interested in "arms merchants," which are the firms helping build clouds by consolidating data centers. According to him, Riverbed Technology, 3PAR (NYSE: PAR), and VMware (NYSE: VMW) are major players in this arena.

Another interesting sub-sector is of the companies providing infrastructure as a service. This sector includes firms such as AT&T (NYSE: T), Terremark World (NASDAQ: TMRK), Saavis (NASDAQ: SVVS) and Amazon.com (NASDAQ: AMZN). The Tech market is also expected to see major consolidation in anticipation of cloud computing. Major tech players such as Apple (NASDAQ: AAPL) and Google (NASDAQ: GOOG) are expected to benefit from cloud computing. These tech giants are expected to enter one or more segments of cloud computing in order to remain relevant.