iCloud

Take a deep breath. We're more than halfway there now, with the rest of the setup process being the quickest part.

You'll need to decide if you want your device to use Apple's iCloud service. It's free and you're given 5GB of free storage to use for backing up your device(s). You'll also have access to a free iCloud.com e-mail address, as well as iCloud calendars and reminders and Photo Stream -- all of which stays in sync with your personal computer or another iOS device.

I recommend using iCloud if for nothing else than automatic device backups and Photo Stream.

Tap on Next after you've made your decision.