Re: cross connects and their pound of flesh

[Mike Hammett <nanog () ics-il net>]

Before 100G, you'd need ten cross connects to move 100G. Now you'd need only one. That's a big drop in revenue. 




----- 
Mike Hammett 
Intelligent Computing Solutions 
http://www.ics-il.com 



Midwest Internet Exchange 
http://www.midwest-ix.com 


----- Original Message -----

From: "Brandon Butterworth" <brandon () rd bbc co uk> 
To: bross () pobox com, dave () temk in 
Cc: nanog () nanog org 
Sent: Sunday, June 19, 2016 8:55:57 AM 
Subject: Re: cross connects and their pound of flesh 

Dave Temkin <dave () temk in> wrote: 
> And as colo operators get freaked out over margin compression on the 
> impending 10->100G conversion (which is happening exponentially faster than 
> 100->1G & 1G->10G) they'll need to move those levers of spend around 
> regardless. 

If they've based their model on extracting profit proportional 
to technology speed then they've misunderstood Moore's law 

brandon