Apple's Time Capsule, announced at the Macworld press conference, promises Mac and PC data backup over a wireless network. Time Capsule is essentially an Airport Extreme Base Station with a 500GB or 1TB hard drive built in. The 500GB version goes for £199 (inc. VAT), while the 1TB version costs £329. Both are currently for sale via preorder, with an unspecified February ship date.
When Time Capsule does ship, it appears that it will be the only device available that combines an 802.11n wireless access point and basic network attached storage. Apple's old Airport Extreme access point comes close, in that it has 802.11n and can accept an external hard drive via a USB port. Time Capsule looks like a more complete, self-contained solution.

Apple's Time Capsule combines an 802.11n Wi-Fi access point with a 500GB or 1TB hard drive for backup over the wireless network.
We love the idea of seamless data backup, and in Time Capsule we think Apple is on the right track. As much as we like HP's MediaSmart Server, its name is intimidating for some, and the features it provides are a bit complex for the average user. But with an apparently user-friendly product that's akin in appearance and function to the Wi-Fi access point you might purchase anyway, Apple appears to be almost sneaking backup capability into your setup. Although Time Capsule will require some software configuration, the hardware installation looks to require only that you plug it into your network as you would any wireless router.
Compared to £119 for the standalone Airport Extreme, you'll naturally have to pay more for Time Capsule, due to its included hard drive: £199 for the 500GB Time Capsule and £329 for the 1TB model. But those prices are fair compared to the cost of an 802.11n router and standalone network attached storage drives of similar size. Time Capsule will work with Time Machine, the backup utility included with Apple's Mac OS X Leopard operating system update. And yes, Windows users, Time Capsule will also work with both Windows XP and Vista systems as well.
Unlike many of the pricier networked attached storage devices on the market, Time Capsule appears to be a single-drive product, which means you can't expand the storage capacity with another drive. Fair enough, given the price, but we're unclear as to whether you'll be able to replace the single hard drive yourself, easily or otherwise. The Time Capsule product page on Apple's web site doesn't suggest that it's possible. We imagine many people would find that inability a major shortcoming, because if the drive fails and you need to take it to an Apple Store for repair, you not only lose backup capability, but your wireless network goes down as well.
We suspect that data backup will remain a remote concern for most people — at least until a hard drive failure occurs. Professionals who take backup seriously will probably have a more robust solution in place, as will hard-core enthusiasts, who may also be turned off by the lack of user upgradeability. That leaves technically aware mainstream users as the most likely Time Capsule customers. These people should appreciate Time Capsule's seamless integration of wireless access and data protection.







Talkback
Just like the newer version of Airport Extreme, you can use the USB port on Time Capsule to attach a printer or hard drive for sharing, and from the Time Capsule product page, "And if you want to share both a printer and an additional hard drive, you can. Just connect a USB hub to Time Capsule." The newer Airport Extreme says you can attach multiple printers and multiple USB hard drives via a hub, so I would imagine Time Capsule also supports that.
It's possible that Time Capsule will only allow backups to its built-in drive, but I doubt that. A more likely concern is that I don't think Time Machine, in it's current implementation, will span backup drives. That is, you may be able to see and backup to the additional shared drives, but you might have to manually move the backup location for some computers to one of the additional drives when space starts getting tight rather than just having it seamlessly continue using the additional storage on Time Capsule's attached USB drives when space on the internal one fills up. Still, that seems like a pretty easy thing to change in software at some point... and I suppose we could be pleasantly surprised and have it already support that (though it's more likely that we'll see that feature when Apple releases additional expansion drives in the same form factor as a new product :) ).