An interesting rumor is claiming that Apple will update their Time Capsule at WWDC in conjunction with the announcement of iCloud. Specifically, it’s rumored that the new Time Capsule will act as a personal server for media to be stored on a specific iCloud account.

Apple’s Time Capsule currently acts as a wireless backup/router utility for Macs on a home network. After tomorrow’s keynote, a new version of the Time Capsule could allow you to archive and store files on iCloud for storage. The Time Capsule’s iCloud archives would be available for access on iOS devices…

Cult of Mac,

“According to the source, Apple has developed a system to make users’ Time Machine backups available through its new iCloud service.

This is the “Home Folder” access concept that we’ve detailed before (how it will be accessed using NFC iPhones and the role of the Mac App Store). All your files and data — pictures, videos, Word and Excel documents, and so on — will be available anytime, anywhere, on both Mac OS X and iOS devices.”

The general assumption was that iCloud would use Apple’s new data center in North Carolina for storing files, but this Time Capsule rumor points towards a more locally-stored solution.

“Our source didn’t have any information about the hardware, but detailed how the Home Folder access system works. Files saved on your computer are backed up instantly to Time Capsule, which makes them available to remote Macs and iOS devices.

If you make any changes on any computer, those changes are updated through iCloud and stored on your Time Capsule. The Time Capsule archives and serves up your files even when your computers are off. When you get home and fire up your desktop computer or laptop, the files are automatically synced across your devices.

This service will also allow you to upload photos and videos from your iPhone or iPad to your Time Capsule. The media will be stored on the device and be made available for other devices to sync. iCloud is the “conduit” through which everything moves, the source said.”

This whole process sounds a lot like Dropbox, but it will be interesting to see what spin Apple puts on their upcoming cloud-sync technology.

I’m not sure how I feel about the possibility of needing to buy a new Time Capsule to get the most out of iCloud. It doesn’t seem like Apple would require more hardware to be bought for a cloud-based service.

What do you think? Would you be willing to buy a Time Capsule for an enhanced iCould experience?