As contradictory as it may seem, Facebook Inc (NASDAQ:FB) which is now pursuing rarefied projects such as drones and satellites to bring the Internet to every corner of the globe, is actually good for traditional wireless and wireline internet service providers, says Cade Metz.
In an opinion piece for Wired, Metz discussed that there is precedent to think that the claim of Facebook Inc (NASDAQ:FB) CEO Mark Zuckerberg – that its projects to deliver internet to more people via unconventional means such as using drones will not hurt traditional internet service providers – is true.
Metz points to the Open Compute Project of years past spearheaded by Facebook Inc (NASDAQ:FB). For the project, the social media giant made its very own specialized computer hardware that can better handle the internet tasks the company had. In a surprise move, the world’s largest social network open sourced its blueprints as part of the project.
In the end, the project did not push traditional hardware makers like Cisco Systems, Inc. (NASDAQ:CSCO) and Hewlett-Packard Company (NYSE:HPQ) to obsolescence. It forced them to realize that they must innovate to survive and thrive, Metz writes.
Metz further reveals that an executive for the social network, Jay Parikh who is a company vice president handling infrastructure engineering, said that the Open Compute Project is a blueprint the firm is following for its internet projects.
“A lot of the things that we’ve learned—that we’ve been working on from a philosophical perspective in [the Open Compute Project]—help us get in the right mindset when it comes to connecting four to five billion more people to the internet,” Metz quotes Parikh saying at the sidelines of the annual Open Compute Project meeting in Silicon Valley last Tuesday.
So fear Facebook Inc (NASDAQ:FB) no more, traditional internet service providers. That is, if you plan to evolve with the times.
“In building those drones and satellites and pushing them into places that don’t have internet access today, it can show the ISPs that there’s value in such expansion, pushing them towards similar arrangements,” Metz writes.
John Griffin’s Blue Ridge Capital owned 3.24 million Facebook Inc (NASDAQ:FB) shares by the end of the last quarter of 2014. The firm added the stake to its portfolio during the said quarter. The stake in the social media giant makes up 3.06% of Blue Ridge Capital’s whole portfolio.
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