In the DataCenter - ISP's and Video Stream Revenues Part II

Continuing on the discussion of evaluating the vanishing value of video streams, Dan and I broaden the discussion to encompass other companies, not just ISP's, who are dependent on moving more bits across that wire.

How much value a video stream provides is not only important for a datacenter group debating this issue to understand. It is also important to companies like Cisco. According to some of the "M&A" guys I chat with, Cisco's entire acquisition strategy right now is predicated on delivery of VOIP/VOD/MMP - and massive video production aka MVP ("Massive Video Production Debut") fits right in. It's all about end-to-end quality from the tech perspective, and building service models that deliver value from the business perspective.

So what does Dan Kusnetzky, Program Vice President, System Software at IDC say about this...

Dan: "Tracking revenues of a product versus development, deployment and support costs is a very useful tool. A quote I read somewhere sums it up. 'Doing the wrong thing, no matter how well or how efficiently, is still doing the wrong thing.' A company isn't going do well if it is losing money on each sale regardless of how much revenue is being produced. Looking at revenues without also looking at the cost structure of producing those revenues is only looking at half of the equation from my perspective.

Knowing this type of information makes it more easily possible to emphasize products that produce high levels of margin and de-emphasize products that don't."

Lynne: I have been over to Cisco recently talking about MVP among other issues, and Rob Enderle wrote it up ("Enderle Writes on The Death and Rebirth of the Movie Industry") as well. Do you think they might be on to something? It took me close to three years of work on this project alone, so it's not a no-brainer to do this and my track record shows that I'm usually at the forefront of a trend. I'm confident here, but do you think they know it?"

Dan: "Cisco is always looking for ways to carve out more revenue for each network packet they deliver. They're also looking for ways to increase the need for basic capacity. What you're doing, if it catches on, will do both.

Thank you Dan for your insight into this emerging but exciting new area of video streaming and content creation.