Internet Traffic Growth Doesn’t Matter | Nyquist Capital: It’s great to read a lengthy post from Andrew again 🙂 (Includes link to Andrew Odlyzko presentatation.)
From my perspective. It’s the old rule of thumb – a healthy horizontal food chain needs 10x revenue at each layer – application / service / box / chip ( for every $1000 of network application there is $100 of network services, $10 of network equipment, and $1 of network chips ). During the internet bubble we had something like $0 / $100 / $10 / $1. Hence the crash. The food chain had no applications to support it. It took a long time for Google, Yahoo, Amazon, etc to make money off of the network infrastructure. They define the networks value.
Iain's Chips & Tech 