We’ve all heard the Kodak story. They invented digital cameras but stuck them in a drawer because it was going to cannibalise their dominant position in the photographic film revenue stream… eventually leading to bankruptcy.
Swisscom invented an equivalent of WhatsApp years before WhatsApp came onto the market. It allowed users (only Swisscom users, not external / global customers BTW) to communicate via a single app – calls, chat, pictures, videos, etc. Swisscom parked it because it was going to cannibalise their voice and SMS revenue streams. That product, iO, is now discontinued. Meanwhile, WhatsApp achieved an exit of nearly $22B by selling to Facebook.
Some network operators are baulking at offering SD-WAN as it may cannibalise their MPLS service offerings. It will be interesting to see how this story plays out.
What also intrigues me is where cannibalisation is going to come for the OSS industry. What is the format of network operationalisation that’s simpler, more desirable to customers, probably cheaper, but completely destroys current revenue models? Do any of the vendors already have such capability but have parked it in a drawer because of revenue destruction?
History seems to have proven that it’s better to cannibalise your own revenues than allow your competitors to do so.Read the Passionate About OSS Blog for more or Subscribe to the Passionate About OSS Blog by Email