How Many Service Providers Tin Escape Dumb Piping Status?
One universally hears service provider executives tilt they desire to avoid becoming “dumb pipe” connectivity providers. What is non too thus clear is how many service provider entities volition genuinely live on able to practise too thus inwards a pregnant way.
For many--perhaps most--suppliers, beingness an efficient dumb piping provider is mayhap the exclusively feasible path forward. The occupation is that virtually proposed novel services too applications need scale.
Whether it is amusement video, mobile banking too payments, connected car, connected wellness or other Internet of Things apps, feasible suppliers must accomplish scale. Almost yesteryear definition, virtually smaller providers volition live on unable to practise so.
That volition hateful an manufacture dominated yesteryear 10 global service providers, about predict. Those handful of firms tin give notice choke branded suppliers of applications. Smaller providers volition fighting to cut costs plenty to stay feasible primarily every bit suppliers of access services.
In other words, the advice to “move upwards the stack” volition live on feasible for a relative handful of firms. Most service providers volition focus primarily on access. In the Internet era, that agency beingness suppliers of “dumb pipe” Internet access.
Moving “up the stack” volition live on necessary too possible for the webscale global giants. Beyond about express scenarios, smaller providers volition lack the scale to practise feasible novel application or services.
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