Tuesday, September 26, 2023

Why TCP/IP Also Was a Business Choice

There are many reasons why the connectivity industry that might well have preferred asynchronous transfer mode instead of TCP/IP as the next-generation network protocol, there are lots of obvious reasons why TCP/IP was chosen. 


Dimension

TCP/IP

ATM

Cost

Relatively low

Relatively high

Scalability

Very high

Not as high

Openness

Open standard

Proprietary

Complexity

Relatively simple

More complex

Suitability for a variety of network technologies

Yes

No


On the other hand, the choice of TCP/IP also had serious implications for innovation and distribution of profit within the app ecosystem supported by multi-purpose, multimedia networks. By creating a layered, loosely-coupled architecture, permissionless innovation was possible.


In other words, so long as an app or service is compliant with TCP/IP network protocols, no business relationship needs to exist between any internet service provider and any app creator. So app creation is “open” and permissionless, not closed. App and service innovators do not need permission, or direct business relationships, to be used on any public IP network. 


In other words, nearly all apps and services become a matter of “direct to consumer,”


Factor

Advantage for Telcos

Advantage for App Creators

Disadvantage for Telcos

Disadvantage for App Creators

Loose coupling

Increased flexibility and scalability

Increased flexibility and agility

Increased complexity

Increased complexity

TCP/IP protocols

Ubiquitous and interoperable

Easy to use and develop for

Less control over network performance

Less control over network performance

Software layers

Easier to upgrade and maintain

Easier to innovate and develop new features

Less control over network performance and security

Less control over network performance and security


If you want to know why connectivity providers such as telcos worry so much about being "dumb pipes," the loosely-coupled, layered architecture of TCP/IP and modern software is a chief reason. 

No developer, app or content provider needs an ISP's permission to sell products directly to en users. Everything is "direct to consumer." 

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