OK, I believe it is too much to assume that GBLX dominates intercontinental traffic. What I am assuming is that GBLX is creating a leadership position by being first to market in a specifically targetted segment with lots of growth potential and a scalable "new" architecture. Over time, I believe such foresight and strength in the sector will be rewarded, eventhough anyone can hire International Fibrecom and have them lay cable.
And I do not contend that ISLD's business cannot be imitated. Of course, the second a company makes its products and services known, it can be imitated. The fact of the matter is momentum behind being a leader in the space...having been there the longest and acquired a reputation and customer base.
When I visited Exodus here in Santa Clara, I was in awe...not because of what Exodus was, but because of what the market thought Exodus was. Exodus is a building with extensive power backup, racks, HVAC, security, etc. There is nothing there that could not be duplicated in a heartbeat. In fact, there are hundreds of colocaters now, just like there are hundreds of ISPs. What makes Earthlink and Mindspring great? Brand, service, and momentum.
Most me-toos are exactly that and cannot create lasting value. I believe ISLD's early position will be rewarded handsomely over the longterm. |
