Bandwidth archives - Uncommon Wisdom
Home > IT Blogs > Uncommon Wisdom >

Uncommon Wisdom:

bandwidth

Apr 20 2009   5:42PM GMT

Online viewing: New study points to the issues



Posted by: Tom Nolle
online video, Online advertising, bandwidth, ISPs

A new piece of university research shows that TV still has the largest eyeball share by far, and in every demographic group. Online video accounts for only a half-percent of viewing time overall, in fact. Computer video commands less than half the time that console gaming does.

All of this proves that the impact of online video on advertising and TV is indirect and not a matter of stealing eyeballs, as some suggest. We believe that the study validates other material we’ve cited here in the past and shows that the notion that online video advertising is the future of online revenue is, at the very least, far from fulfillment.

This is significant first because it means a lot of startups are probably doomed and YouTube will probably not monetize effectively. More significantly, it means that ad revenue can’t be expected to bolster Internet bandwidth growth, even if we figured out how to flow some of it to the ISPs. Ad revenue loss, partly to online, is indeed a problem for TV, but grabbing online video ads won’t be anyone’s solution.

AddThis Social Bookmark Button     0 Comments     RSS Feed     Email a friend

Mar 2 2009   3:58PM GMT

IBM’s cloud computing position: Make the PC obsolete?



Posted by: Tom Nolle
Cloud computing, IBM, bandwidth

IBM is using its clout with universities to pull the computer science curriculum n a more “cloudy” direction, to build awareness of and skills in cloud computing. According to our sources, IBM’s radical shift is based on simple economics.

IBM believes that as network bandwidth costs fall, what happens on the network and not in it will determine the future, build profit and revenue growth, and change user and business behavior. Distributing computing power in new ways is clearly an example of something facilitated by declining unit cost of bandwidth.

It is also true that a shift in power from personal computers and laptops with general-purpose missions toward netbooks that are little more than browser platforms with local storage suits IBM, which no longer makes PCs. The cloud craze, so our IBM sources tell us, is revolutionary because it will ultimately make the personal computer obsolete, and that its impact on personal computing will be far larger than its impact on business.

AddThis Social Bookmark Button     0 Comments     RSS Feed     Email a friend