interesting reading....


http://mail.internet2.edu:8080/guest/archives/qbone-arch-dt/log200205/msg00000.html


regards, /vicky

Edward B. Dreger wrote:
GC> Date: Sat, 29 May 2004 16:53:17 -0400
GC> From: Gordon Cook


GC> The point I am making in my report is NOT that the best GC> effort network has technology problems but rather that it has GC> ECONOMIC PROBLEMS. That it might support 2 or 3 players not GC> 2 or 3 HUNDRED.

Best effort is cheaper to provide.  Cheaper sells.  Is there
enough of a market to sustain premium services?  IP-based VPNs
haven't replaced FR and PtP WAN links, but FR and PtP haven't
thwarted IP-based VPNs.


GC> That until companies begin to go chapter seven and vanish, GC> the best effort net will be a black hole that burns up GC> capital because, for many players, the OPERATIONAL expense is GC> more than they get for bandwidth never mind cap-ex.

Definitely true about opex and capex... but I'm not convinced
that QoS is the magic bullet that will make the marketplace big
enough and profitable enough.  I don't see service offerings
fixing the woes of screwball pricing.


GC> best effort won't go away. many best effort players will.

If all best effort players provided QoS/guaranteed services,
would the survival rate be significantly higher as a result?


GC> for the time being, best effort bandwidth prices as an GC> absolute commodity cannot sustain networks over the long GC> haul. A network that can deliver QoS the report hypothesizes GC> may be able to attract enough revenue to become profitable.

That's where I'm not convinced.  Current IP delineates the lower
reliability boundary and a benchmark price point.  Premium
services won't have a lower cost than best-effort, so they must
sell for more.  Would the incremental service improvements be
high enough to draw customers away from cheap BE _and_ support
"sufficient" margins?

First class hasn't stopped the cycle of airline bankruptcies and
government bailouts.  I don't see "first class data" as much
different.


GC> How to to this my group is still discussing. We don't GC> pretend that QoS is easy or any kind of mature collection of GC> technologies, but increasingly it looks as though the GC> industry, if it is ever going to be self sustaining, really GC> needs to look at QoS services and solutions.

Perhaps, but only if the price is right.  DSL sells better than
Internet T1 lines, which sell better than end-to-end private
lines and packet clouds.  There's a reason for that.


Eddy -- EverQuick Internet - http://www.everquick.net/ A division of Brotsman & Dreger, Inc. - http://www.brotsman.com/ Bandwidth, consulting, e-commerce, hosting, and network building Phone: +1 785 865 5885 Lawrence and [inter]national Phone: +1 316 794 8922 Wichita _________________________________________________________________ DO NOT send mail to the following addresses : [EMAIL PROTECTED] -or- [EMAIL PROTECTED] -or- [EMAIL PROTECTED] Sending mail to spambait addresses is a great way to get blocked.


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