"On a desktop computer you have limited processing capability and limited storage," he says. "What we have done now is by being in the cloud we have an unlimited amount of storage and processing power. Most people when they start rendering on desktops, they find that video takes longer to render. This is a true paradigm shift in terms of use and speed."

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For now WeVideo is offering its service through a subscription model where users can post and edit videos in 360p resolution for free but can also post and edit 720p high-definition videos for $40 a month. Svendsen says that while the company is looking at additional ways to generate revenue in the future, it's comfortable right now that it can make money from offering people a subscription service that lets them post and collaboratively edit their own videos, especially since they'll be getting a push from partnering with other big companies that will utilize the technology.

"We'll come to the market with major strategic partners, giving us access to millions of users around the world," Svendsen explained during his demonstration this week. "These will include major telecoms ... smartphone manufacturers and the largest online video-sharing websites in the world."

in Network World's LANs & Routers section.