Saturday, July 28, 2007

The "Media Center" will Fail

A vision of the future

by Mark Hewitt - July 28th 2007

Our company "EcoSystem Partners" is founded on the premise that the Internet has caused a fundamental shift in the creation and delivery of Broadband services. The traditional model which combines the “Utility” nature of Infrastructure with the economics of “Services” has come to an end.

The Internet today can be delivered over an array of Infrastructure and thus the dependence of limiting supply to increase the demand no longer works. This has been proven as we have witnessed the largest bankruptcy cases in history with MCI and Global Crossing – followed by the reintegration of the RBOC’s to the New “AT&T”.

We continue to see Innovation bring about strong new products with examples like, Plaxo, MySpace, Google, and the list goes on. EcoSystem Partners believe that the old business model that calls for the restriction of access to bandwidth to increase the value is actually causing damage to our overall economy. Today we support efforts to bring about a careful blend of ownership of our Communications infrastructure and to create a separation between Infrastructure and Services. This separation of power is designed to promote responsibility over our core Communications Infrastructure and the services that improve our security and quality of life.

We see many business leaders today working toward a goal of bringing together bundles of products and services, designed to simplify product selection for consumers. Yet every time a product attempts to incorporate proprietary control they fail. I predict one of the largest failures will be seen in Microsoft’s “Media Center” it is too restrictive and content will only grow once it is free to do so.

This process accepts an element of risk that most investors and CEO’s are unable to deal with (the exception to date is Google) yet this process is well documented with a rich history of how success requires supplier to work in “Open Markets”. We know that consumers will choose not to buy when they are either confused or feel that they have no choice. Nobel mathematician John Nash has given us the proof which today continues to fuel an expanding World Market.

I encourage any and all comers willing to collaborate on this vision of the future to join with us in strategy, resources, marketing, and investment to grow a market where innovation is allowed to flourish.

Start by sending me a brief note of your interest and how either networking, collaboration, or joint efforts may help to bring about a successful venture.

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