This may be only valid for our part of the world, Northeastern US.
However, it is a highly linked, high tech world. Labor, capital,
equipment are quite mobile. I can advertise on the web and get first
class Irish engineers responding within hours. 24hoursx365days I can
buy high-end, surplus routers from
Australian/English/Singaporian/California train wrecks.
worldwide presence (peering points, pops, whatever)
Unfamiliar with costs for peering (yes, the sense of irony is intended),
worldwide L1/L2 costs between pops
Prices continue to drop due to massive over supply and under-demand
and technological improvements,
staff (engineering, operations, management, sales, marketing, etc)
Sorry to say, but labor prices continue to drop due to massive over-supply
and under-demand... I have been interviewing quite a bit in the last
six months. The number of world class engineers whom have been
out of work for over a year at these interviews is really depressing. I
have had bad dreams about it. Who knows when I might be in their
capital (for all those pops)
Cost of capital investments is way down. While the cost of bank
capital is way down, interest rates at an all time low. However,
since equipment is selling for $0.20 on the $1, over supply of
equipment is the defining factor.
rent (of things that aren't pops, like HQ offices)
Prices continue to drop due to massive over-supply and under-demand.
We had been negotiating for some prime space. In the beginning, the
landlord wanted twice as much as we thought it was worth. But we are
patient. As the bottom continued to fall out, we negotiated final
terms that gave us the first year *free* and the following five years
at half their asking price.
marketing, legal, travel, other goo
Many of these can be trimmed.
People out there are making money, but you have to have reasonable