How Many Service Providers Tin Escape Dumb Piping Status?

One universally hears service provider executives argument they desire to avoid becoming “dumb pipe” connectivity providers. What is non then clear is how many service provider entities volition genuinely hold out able to practice then inwards a pregnant way.

For many--perhaps most--suppliers, beingness an efficient dumb pipage provider is perhaps the exclusively feasible path forward. The work is that near proposed novel services in addition to applications postulate scale.

Whether it is amusement video, mobile banking in addition to payments, connected car, connected wellness or other Internet of Things apps, feasible suppliers must accomplish scale. Almost past times definition, near smaller providers volition hold out unable to practice so.

That volition hateful an manufacture dominated past times 10 global service providers, unopen to predict. Those handful of firms tin expire branded suppliers of applications. Smaller providers volition combat to trim down costs plenty to stay feasible primarily every bit suppliers of access services.

In other words, the advice to “move upward the stack” volition hold out 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 hold out necessary in addition to possible for the webscale global giants. Beyond unopen to express scenarios, smaller providers volition lack the scale to practice feasible novel application or services.