Ted Shelton has a great post about the economics of VOIP. According to Ted it does not take a lot of money to get your own long distance company up and running, say $8k of capital equipment costs not including the variable cost of running T1 lines, etc. If I can now take open source software (Asterisk), off the shelf Lintel boxes, and cheap cards to manage the T1 PR1s to interconnect with the public telephone network, and for $8k upfront be my own phone company, that is a scary proposition. Of course, this is oversimplifying the matter as it does not include the expense of sales, marketing, and customer support. However, this is yet another example of a broader trend, the commoditization of hardware and software. There are no sacred cows here. Even expensive telephone gear and equipment is at the mercy of the open source and Lintel movement.
Published by Ed Sim
founder boldstart ventures, over 20 years experience seeding and leading first rounds in enterprise startups, @boldstartvc, Saas 2.0, googlization of IT, security, smart data; cherish family time + enjoy lacrosse + hockeyView all posts by Ed Sim →