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