Yes I agree that it is one of the largest buzz words this generation, but to say it won't work when we all (including Cerny) don't know what Microsoft are doing with it is just silly.
If Microsoft would actually clearly explain how it's gonna work and would show playable demos of how awesome the cloud is maybe people like me would not be skeptical.
For now this is just a buzz word. People keep touting about the cloud but we have yet to see a real life demo of its awesomeness. When Microsoft demoed driveatars at E3 to me it looked like a perfectly normal and traditional racing game AI. Nothing special. Titanfall looked like a great multiplayers shooter but nothing not doable on a normal pc using Steam and bunch of good dedicated servers. Gfx of Titanfall were great but I was more impressed by The Division (multiplatform title running on PCs at E3) actually.
As a computer engineer i'm curious to know how it's gonna work. How it's gonna help games on a regular basis without the latency interfering with the experience. Cause save for persistent world materials and dedicated servers i don't see how it's gonna help games that much. Now i'll admit i'm not a skilled computer engineer just an average one and i've been working as a web designer for years now so i'm a little bit out of touch with new techs.
I'm sure some a crazy guys will find a way to use this to create some crazy gameplay while making an exclusive One game. But will big publishers be able to easily use the cloud to enhance multiplatform titles on a regular basis? Will it be cost effective and worth it? This has yet to be proven, demoed or even explained at all.
For now and until Microsoft proves me wrong by demoing it the Cloud is the next Blinx: The Time Sweeper. Remember Blinx? I personally do. Back then i was a mod at Gamespot. In the System Wars forum XBox fans were all talking about this game. How the HD would improve gaming. Revolutionize it. How Blinx would be awesome and not doable without the HD. And the Bethesda guys gave then ammunition by saying Morrowind was not possible without an HD (which was a complete lie). Finally Blinx sucked and the HD did not really make the games better (which was expected).
In the end it's all about the games. No matter how awesome the cloud is it's still possible to make great games without it. If the One doesn't have the best games then the PS4 will sell better and devs will just ignore the cloud. It will become a novelty for exclusive titles. The One and PS4 will be released soon. If the Cloud is to play such a big role they'll need to show it soon. They don't have a 1 year headstart like last gen.