« Web Based Karaoke: Super Cool Website | Main | FCC to "hear" the future of VoIP on Dec 1st »

November 17, 2003

Irrational Exuberance hits the VoIP Marketplace

"Irrational Exuberance" can best describe the year-long run ups in stocks in the public IP Communications sector.

I expect to see a market correction.

This was a trend first noticed back in mid-July and something which the market briefly corrected.

I have a hard time with the current P/E ratios. Some people don't realize that to the extent that IP Communications is the rage, this has the side effect of providing a reason to keep service provider CAP EX spending at a reduced level - mostly because these new platforms provide technology and functionality at a significantly reduced price point and tremendously increased efficiencies.

Posted by jeff on November 17, 2003 08:00 AM | Permalink

Additional resources: #140conf events | Watch the Jeff Pulver Show | Jeff's Qik Videos

Comments

Nortel CEO Dunn was recently quoted (http://news.com.com/2100-1037_3-5108319.html?tag=nefd_top) as saying, "Shares of telecom equipment makers have rebounded during the past year on hopes the worst is over and growth will resume. But Dunn said expectations for spending on telecom equipment should be modest."

Posted by: Aswath at November 18, 2003 06:29 AM

QoS is answered in many systems and architectures. And QoS is used as FUD in many places where it shouldn't. That said, there are significant cost savings as well as business cases for advanced features available using IP that will tip the balance in the favor of using it. Did you notice recently that Big Blue said their entire corporation will be on VoIP by 2008? That's very huge news for VoIP and one that will have a lot of other corporations scrambling to have a similar plan.

Posted by: Matt Holdrege at November 17, 2003 09:54 PM

I just don't get the rush to VoIP at all -- using VoIP on the internet just doesn't seem to make sense for business given the lack of QoS management. Because of the lack of dependability there it seems relegated to perpetual toy or experimental status.

Perhaps within organizations avoiding multiple wiring setups it might be some saving. But the world there seems headed to wireless data communication and orphaning current VoIP hardware.

I am missing something big here? Is there any rationality at all to business use of VoIP?

Posted by: Brian Sullivan at November 17, 2003 09:17 AM