I have two desktop computers — a Mac and a PC — but I rarely use their hard drives. Most of my apps are accessed via the cloud. My documents and media content live there, too.
I’m not alone because the cloud has become a megatrend and is rapidly going mainstream. Hey, just look at Best Buy’s (NYSE:BBY) Superbowl commercial, which had Amy Poehler ask: “What is the cloud? Where is the cloud? Are we in the cloud right now?”
To be sure, a flood of start-ups are trying to capitalize on this boom. One of them — Bitcasa — is actually making the claim of providing limitless storage. And the cost is a mere $69 per year ($49 if you use the promo code “BETATHANKS”).
Sounds great, huh? It is. But you should be a bit wary.
It’s a good bet that most people don’t need unlimited storage. What’s more, many storage services are available to choose from. Some are also backed by large companies that have massive infrastructures, like Microsoft’s (NASDAQ:MSFT) SkyDrive and Apple’s iCloud.
Obviously, a key purpose for storage is making sure your data is safe. So relying on a start-up — especially one that has uber-ambitious claims — could be dicey. New companies have a tendency of going bust or fading away. If so, it could mean that your unlimited storage may suddenly be very limited indeed.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.