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Google Fiber failed because being a telecom network operator means tying up billions in capital assets in your infrastructure and then only making 10% margins.
by exelius 9y ago
Google Fiber failed because being a telecom network operator means tying up billions in capital assets in your infrastructure and then only making 10% margins.
Google’s business model is built around low capex and 35% margins. It’s simply a terrible fit for the other side of the company. Exponential growth becomes logarithmic growth and drags down their financials if they scale out too far.
- notyourday 9y agoGoogle Fiber failed because it was a software company that has engineers that have never seen a prism decide they can take on VZ. When Warren Kumari gets less accolades than a random Google SRE you have a real disconnect with reality.