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Staunch critics of this defining evolution of technologies might still find neither Napster nor the VoIP epitomic of disruptive technologies after reading my Part 2 on Disruptive Technologies. That is logical, as what Napster replaced is truly debatable, and the VoIP technologies have yet to take over traditional telephony.
Perhaps I should delve deeper into the Napster impact and the upcoming VoIP challenge to further prove my point, that they are indeed disruptive technologies.
Peer-2-Peer is not too new (except the term itself): the first P2P applications, USENET and FidoNet, had already been developed in the 1980s. However, Napster was the first popular P2P music sharing program. Its 1999 debut launch was so welcomed, mostly by college students and amateur artistes, that the commercial music industry was sent reeling. Let us not further discuss the questions of legality, privacy and copyrights that almost invariantly engulf the topic of Napster but, instead, what was disrupted.
Napster essentially embodies the revolutionizing file-swapping P2P technology that has since been evolving, with the like of KaZaa, LimeWire or eMule. It is said to have heralded a new age of digital bits (not only music but everything electronically encrypted) circulation on the Net, from the central server method to a peer network of individual computers all across the globe. Indeed, as powerful networked computers and inexpensive bandwidth become available, peer-to-peer computing is transforming the way information is exchanged, stored and valued. It is winning the battle against subscription services (a move by computer giants to take on P2P technology). Too bad for the latter that P2P is cheap, or even free, and by far tough to beat.
With P2P comes sheer creativity that sustains the force: the music editor software industry. It is fair to say that music editors are somewhat underappreciated in the rise of P2P networks. Allow me to re-emphasize the point that the majority of Napster fans were college students and amateur artistes. Both make convenient use of music editor softwares developed by Audio4Fun, Sony or Adobe to facilitate their P2P experience: the former could avoid copyrights violation, while the latter perfect their works before publishing. Yet, despite considerable contribution to the growth of Napster, music editors are not anywhere near the discussion of P2P technologies. Though modern file-sharing arrangements allow transfers of original copies and all other types of electronic documents, music editors and the like together with broadband connection have helped effect a shift from the central-server file transfers to peer-oriented file sharing.
P2P not only impacts the music entertainment; the movie and publishing industries are next in queue to worry. However, the biggest web buzz these days is Voice over Internet Protocol (VoIP). Israeli Vocaltec offered the first Internet Phone product 11 years ago. Now, Skype, Vonage and Google Talk are ferociously promoting the business.
Voice data packets empower communication efficiency, as bandwidth lines are not entirely used up by ongoing conversations. Reserved bandwidth and improved sound quality are making VoIP an effective alternative to traditional telephony: connection lines are constantly being wired all over the world, and voice changer software products promise to bring customers clearer nick-voices of their own preference. Standard telephone networks, especially mass-market long-distance services, are already feeling the heat of the competition, as many VoIP companies are offering unlimited calls to anywhere in the world for a very affordable monthly subscription fee.
However, placing phone calls alone does not justify a global switch-over to VoIP. The technology needs to promote a more diverse utility. Fortunately, VoIP can do just that; it boasts more potential than just the cost advantage over traditional telephony. Corporate use of VoIP is increasing, with IBM and General Motors applying VoIP networks to facilitate their discussions. The US Navy also uses Tenor VoIP for secure ship-to-shore communications. In addition, one other important potential of VoIP is said to be site interconnection: university campuses could be interconnected at little costs for effective exchange of workshop materials and students' project works.
Despite many theses, VoIP has not achieved major market share compared to the long-standing PSTNs (Public Switched Telephone Networks). But it could in the near future. In view of the many potential uses of VoIP, that does not seem a wild bet. A spokesperson from Verizon would agree with me, as he gleefully called VoIP a “disruptive technology” and touted it as a selling point for DSL lines.
Yes, VoIP and Napster-inspired P2P technology face challenges of their own on their way to successfully displace market giants. VoIP needs to develop the omnipresent effect to make it the equivalent of mobile phones, while P2P networks has yet to address the standard of exchange sources. Furthermore, both are concerned with the issues of security and quality of service. Music editors and voice changers could only mitigate parts, and not all, of these problems. And as soon as there is a significant viral outbreak, VoIP and P2P will go down.
Nevertheless, as long as P2P remains online, and free, it may be difficult for Universal or Sony BMG to find new customers. And VoIP holds the prospect of cheap communication for an increasingly connected world. A few addressable problems cannot blur men's vision from these billions-of-dollars ventures that only new, disruptive technologies could entail.
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