The Changing Of The Guard?

Nolle, Tom
February 2006
Business Communications Review;Feb2006, Vol. 36 Issue 2, p8
Trade Publication
The article projects the possible commoditization of network services and equipment. The author defines commoditization as the state of a product by which it is cheapened by widespread availability, loses brand identity, and becomes featureless and incapable of supporting differentiation. The author establishes his case around four basic propositions: (1) the costs of bandwidth is falling; (2) the decline of buyer literacy; (3) the transfer from hardware/product orientation to one emphasizing services and software; and (4) the dynamics of vendor competition and consolidation. The author emphasizes that consolidation, such as for networking equipment and computers, is the market response to commoditization. It is projected that the content will be he last resort in the networking world.


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