Alok Swain

Cisco Says Video Traffic Is Growing, But Where's the Business Going to Come From?

Fully concur.

Dan good work.

Many people mistake the growth of traffic with revenue. You have made the key point that they don't necessarily correlate.

In fact if the traffic volume grows that's good for companies like Cisco, they get to sell more gear, no wander they want to publicize it. But is that necessarily good for service-providers, because they have to get their equipment upgraded to support these services. And if they don't get to monetize these services, their revenues decline and their capex increases. That's bad for the service providers.

Usually if you find somebody peddling info like this - that some traffic or the other is growing at a fast rate (if not exponentially) those are mostly box makers like Cisco. They have a vested interest in showing that traffic is growing disproportionately, just so they can get to sell more gear. May be I'm just cynical. I should be after seeing the telecom bust of 1999-2000.