Comment by storystarling
11 hours ago
I'm not sure I agree about the lack of a technical moat. While spinning up a basic WebRTC wrapper is trivial, the real challenge is the global distributed systems engineering required for low latency and reliability at scale. You need a massive edge network to handle routing, jitter buffering, and packet loss effectively across continents. It seems like the hard part isn't the client, but ensuring it actually works reliably when you have millions of concurrent streams on flaky connections.
This stuff was state of the art 15-20 years ago, it's more of a commodity now.
That doesn't mean it's easy or cheap. The moat is more in the installed base of data centers, edge networking, etc. US cloud providers undeniably have a bit of a head start there.
But the EU has a lot of domestic infrastructure as well. And the US outsourced a lot of things as well. E.g. mobile infrastructure and networking is now dominated by Chinese (Huawei) and European companies (Ericson, Nokia). Former telecom giants like Motorola seem to have faded away. Nokia actually owns Bell Labs currently. And of course a lot of the software involved is open source with a very international developer community. The hardware comes from Asia or in some cases Europe. ASML is Dutch, ARM is nominally still headquartered in the UK. Ownership of these companies is of course more complex.
> The moat is more in the installed base of data centers
For Slack and Teams, I'd say not even that is necessary. They're not meant as broadcast tools, even if they could be used as such, they're tools for… well, for teams. Either within a single company or B2B stuff. Given how powerful all the client devices are, the remaining work of the server to coordinate them all should, in 99% of cases, be so low that you can offload it to someone's bluetooth earbuds (as per recent story of Doom being ported and the conversions it led to about the typical modern embedded processor, and what we could do back when servers were that powerful).
It's not like every Slack/Teams instance is also running some clone of Google's Page Rank indexing of the entire internet locally.