Are Tech Giants Really Making Money on the Cloud?

It's now safe to assume that all software-based businesses will be cloud-based eventually. That raises an important question: Do we know how the major players are doing in the cloud? The answer is, "not really," and that's an issue that investors should raise with tech leaders.

Installing software, especially specialized business-oriented systems, on local computers is obsolete, as is downloading media content. Companies increasingly sell applications and content as cloud services, charging a subscription. Some of the newer market entrants -- such as Salesforce.com or Netflix -- are cloud natives, and their business models are viable for years to come. Older tech companies, however, have to switch to a new way of doing business, and that's never easy.