networks ICT
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http://dcseurope.info/n/aqut
2012 could be a great year for Networks
Innovation and forward thinking will be rewarded, but smaller or less agile firms could be taken out, says Adam Janota, Director, Global Networks at Equinix.
A
lot of Carrier businesses may agree that 2008 – 2011
was a very difficult period for the industry. The industry struggled to cope with exponential growth in data volumes vs. falling wholesale prices for their principal services – and this was set against a backdrop of an unprecedented financial crisis that has heightened the pressure on price, while simultaneously reducing scope for investment and diversification by Network Operators. However, bad times do not last forever and there are glimmers of light on the horizon, both in the wider world economy and for the Networks industry.
Invariably many of these potential opportunities for Carriers are also potential threats – it depends on whether an individual business can be classed as predator or prey. Many industry commentators believe 2012 will see a period of consolidation in the networking industry, with
38
www.dcseurope.info I June 2012
more agile innovative companies that have maintained healthy growth acquiring assets of their more distressed industry peers. In essence those companies who were able to turn threats into opportunities will thrive at the expense of those who could not. Let’s examine some of these key issues:
A nice problem to have
One of the “problems” we often hear about in this industry is that of exponential data growth. Perhaps challenge is a better word. After all, there are worse problems to have than exponential growth in demand for the core service your business provides. Indeed this is a problem that some other industries may envy. The challenge is how to meet this growing demand without eradicating margins in the commonly referenced “race to the bottom.”
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