Study: Most U.S. consumers don't fully understand the cloud

Companies are energized about the cloud. But are consumers? A new study from market research company The NPD Group revealed many folks are still baffled by the concept - even when they use it regularly.

Cloud computing - which the NPD defined as "software applications or processes that are accessed from the Internet, rather than on personal computer hard drives" - is ironically already a big part of most people's livelihoods. Not a surprise - email, chat and social networking services are ostensibly cloud-based.

Stephen Baker, vice president of industry analysis with the research firm, explained that the disconnect refers solely to a lack of technical knowledge. Though only 22 percent of those polled in the group's "Digital Software and the Cloud" report said they knew what the cloud was, 76 percent have used cloud services in the past year.

"Whether they understand the terminology or not, consumers are actually pretty savvy in their use of cloud-based applications," said Baker. "They might not always recognize they are performing activities in the cloud, yet they still rely on and use those services extensively."

Baker concluded that "traditional PC-based software applications" are still favorable to many.

The report also found that people who play online games and share photos are more "savvy" to the cloud than those who rely on it for work-related or storage services. This disparity could prove problematic for companies gearing up for new cloud ventures. Apple is prepping iCloud for current iTunes customers. Due out this fall, the service will allow users to freely store their music collection on the cloud. Paid options which increase the amount of allotted cloud real estate will also be available.

How often do you need to explain to friends and family what the cloud is? Let us know in the comment section.

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