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Will the road close on small Internet providers?

Internet & Technology

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The Internet is big business, probably entails the largest investment in technology ever.  If a business is not involved in some way in Internet Technology, it is  not considered serious.  This can range from using the Internet in their business to being a high technology provider.

It's clear that high speed Internet service is at the heart of a nation's ability to deliver technology and  information.  It is vital to the prosperity of all countries.  The players in the Internet business are many, both large and small.

If you are a small business involved in the core of the Internet, you must have the following:

  • a unique product.
  • excellent service
  • an expanding marketplace in your niche.
  • creative and hard working staff
  • nimble research and development.
  • access to venture capital to grow.
  • a 20% minimum investment year over year in R&D.
  • high technology management that know the product and the industry

The delivery of high speed Internet is no longer a small company's place to be.  The big companies with vast resources are more and more dominant.  They can afford to deliver the latest technology in the most efficient way.  The delivery includes:

  • phone service
  • television and multi-media
  • web hosting
  • wireless service

 

The Internet Technology field is a great place for young companies with unique services, but it is no place for older companies that are small and not nimble with new offerings.  You can be small, but if you are slow, you are dead in the water.  Any company in this state should find a buyer and get out of the business.

Start-ups can thrive and grow in the application and expansion of the Internet.  It is doubtful if older small companies can structure themselves to deliver the Internet via cable, fibre optic or other means.  That business is capital intensive and size of the company and its bankroll are important.

Google-like companies come out of nowhere to be dominant in their area.  Some create their own market segment.   There will be new technology from unheard of new companies.  It appears, however, that delivery is for the big guys.  It's a capital intensive process
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Monday, June 14, 2010