Cisco’s Born-Again Consumerism

10 thoughts on “Cisco’s Born-Again Consumerism”

  1. Bandwidth is just like processor cycles. memory, and storage capacity. Every year people seem to say that we’ve finally reached the point of diminishing returns. “There is no reason to add more of X, we’ve already got all we need right now.” And yet every year new applications spring up and suck up every last bit of excess capacity.

    I was having an discussion with my partner about the tradeoff between bandwidth and processor cycles and bandwidth and storage, etc. The general idea being that as bandwidth increases, you need less storage, and as processor cycles increase, you need less bandwidth due to more efficient compression. And yet somehow, even with these cumulative efficiencies, we’re still hungry for more.

    My conclusion is that while diminishing returns are real, nobody cares. The price drops so fast that we just buy the upgrade and fill the capacity, whatever it is. It’s not as much about the underlying economics; at a macro level, it’s about human nature. We always want more.

  2. Alex,

    you make a great point. I personally think we haven’t come to that equilibrium where applications can consume as much bandwidth as we can. I think that is going to be the most crucial thing to watch in years to come. I think video is a good start, but we need to go beyond that. Torrents in today’s form are not the most optimal solution, and I think entreprenuers need to step-up with apps that are bandwidth hogs.

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