Tuesday, November 18, 2008

Core Business

As we go through the aftermath of yet another bubble, I think it's important to note that the very infrastructural core of the Internet isn't really profitable right now. Internet networking shares some of the characteristics of utilities, but there are also differences related to the multiplicity of underlying technologies, the relative independence from physical resource constraints, and the quick pace of technological change (if not always reflected in the infrastructure, definitely driving increased demand).

I'm not sure what Internet networking will look like organizationally and financially ten years from now, but it's probably going to be different from the past, and it's certainly going to be important.

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