Cisco is not a happy place to be these days. Last week, when Cisco announced they would be cutting as many as 11,500 employees, or 15% of their 73,408-strong workforce, I was reminded of the earlier step they took last quarter, when Cisco announced it would shut down and discontinued Flip, pink-slipping 550 employees. You might recall that Cisco acquired Pure Digital, the manufacturer of the popular Flip digital camcorder, for $590 million back in 2009. Even then many observed this was not a great fit. Continue reading Did competition kill Flip or Cisco fumbled?
Earlier this year, I presented at OTTcon. This was the first major conference about OTT (video) ever, and was attended by a few hundred people and many industry players. Coming into this conference, I was under the distinct impression that OTT is a significant disruption to traditional service provider business and that it would have a significant and negative long-term impact on that marketplace. The common wizdom is that service providers who have the most to lose will be the least motivated to support OTT, and will therefore be the last to embrace it, if ever, will ultimately face the disruptive impact most of all, possibly losing their video distribution business over time.
But—I came out of the conference with the opposite conclusion! It’s not that OTT won’t be disruptive – it will, but not “as” disruptive as one might expect. And most of the market players will probably remain in place and not be sidelined by OTT. If it were truly disruptive, it would harm the existing service providers more than I expect it actually will.
Why? Because I think the current service providers themselves will ultimately be the ones that enable OTT content, thus avoiding a major disruption – whether they know it right now or not! In fact, right now, they’re doing very little, and most OTT is being enabled by others. So why do I think they’ll wake up in time? Read on to find out.
In case you’re wondering, OTT means “over the top” and it refers to all traffic that flows “on top” of broadband access, typically provided by someone else. For the service provider who provides the access to the Internet, this is just “data”, but for the consumer, this is “video”. While there are many other types of OTT content, this conference was only about video. When I’ll use of the term and “OTT” here, I’m referring only to over-the-top video content.