Apple Inc. has decided to buy the four years old music start up Lala in what seems to be an effort on part of Apple to provide the user with new innovative ways of storing and playing their downloaded music. The terms of the deal are yet unknown, but the acquisition would be greatly beneficial for Apple, who has been striving to provide more simplistic functions for its widely used Apple iTunes music software.

Lala has been widely known for its cloud computing technology that enables the users to purchase music online for 10 cents a song and then save it on the servers, with which the users can then listen to their saved collection anytime, anywhere, provided they have an internet connected device. Apple iTunes on the other hand, enables the users to buy music and then download them to their computers.

According to Larry Kenswil (Loeb & Loeb),

“There’s a big question in the industry about what will be the dominant way people will obtain music, whether it’s stored in the cloud or whether it will be on a hard drive. Apple is wise to cover its bases because it’s only in the download business.”

However, the growing concern so far with the acquisition of Lala by Apple is the fate of the music previously downloaded by Lala’s users and stored on the server. Now that Lala has become a part of Apple Inc., many believe that, the songs on Lala’s servers could disappear as the contracts with the record labels could become null and void after the acquisition by Apple.

The new deal will certainly benefit Apple, because the company would not have to create its own cloud server and instead can easily capitalize on the existing Lala cloud services and provide the users with the exact services that, users wish to see from Apple.

Via New York Times.