IBM Aims to Be the King of Cloud Computing


Everyone wants to rule the cloud computing roost. Even Apple, which yesterday announced iCloud enhancements for pushing movies to the new Apple TV, wants in.

But IBM (NYS: IBM) is hoping it can change the game with a new device for streaming the contents of an entire PC -- software and all -- over the Web. Called the "Secure Enterprise Desktop," a USB key provides instructions for accessing an entire system from the cloud. No local software required.


Source: IBM.

Big Blue says the idea derives from Swiss banking software called Zone Trusted Information Channel, or ZTIC. Financiers use ZTIC to secure sensitive electronic banking transactions. Here, Secure Enterprise Desktop tunnels a direct connection to a faraway server while entirely bypassing the PC or Linux computer into which it's been inserted.

The device then invokes a virtual machine known as a hypervisor to get work done. Thus, the local machine becomes a host -- like a dumb terminal accepting changes from a mainframe. Changes that look like they're occurring on the desktop are instead synchronized on the cloud.

Interestingly, Big Blue isn't the only company that sees the potential in bringing entire desktops to the cloud. A startup called Numecent has invented a process it calls "cloud paging" that cuts applications that live in the cloud into tiny, secure, digestible bits and then delivers them -- and the chip-level instructions for running them -- over the Internet. It's an astounding breakthrough if it's real. (I've yet to see it, but those who have rave about Numecent's technology.)

I've no reason to believe it's anything but coincidence that IBM and Numecent are talking up desktop-as-a-service cloud computing at the same time. Yet the timing is also too interesting to ignore. At the least, it suggests cloud computing isn't just a new paradigm; it's a permanent paradigm -- a shift best marked by accelerating revenue growth at cloud computing poster stock (NYS: CRM) , realized after spending years and millions convincing us that business computing could be done online.

Think I'm wrong? Go ahead and tell me so using the comments box underneath. Or if you'd rather spend more time investigating how you can profit from the cloud computing revolution, watch this new video special report from The Motley Fool: "The Two Words Bill Gates Doesn't Want You to Hear." The research is free, but only for a limited time. Watch it now!

At the time thisarticle was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He owned shares of Apple, IBM, and at the time of publication. Check out Tim'sWeb home,portfolio holdings, andFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.The Motley Fool owns shares of Apple.Motley Fool newsletter serviceshave recommended buying shares of Apple and, creating a bull call spread position in Apple, and shorting Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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