Think the Internet is done growing? Cisco Systems
According to the latest update of Cisco's global network traffic forecasts, the worldwide hunger for ever-greater bandwidth is far from sated. The fuel beneath that fire comes from trends like expanding infrastructure in Africa and the Middle East, as well as more and faster mobile broadband access everywhere.
But most importantly, more than 90% of all consumer traffic will come from various forms of network-delivered video.
The rationale for that outrageous video forecast actually makes sense. It doesn't just account for Google
Instead, consider the broad adoption of high-definition content on bigger and cheaper screens. We're not only talking about more devices, but also higher quality. And as video quality expectations increase, Cisco clearly hopes that businesses will adopt its HD Telepresence videoconferencing technology as well.
Bigger screens with more pixels can display more data than their older, smaller equivalents. In fact, consumers and businesses will start to demand it, helping the growth curve continue to bend upward for another few years. That's great for network infrastructure providers like Cisco or Juniper Networks
I expect these trends to continue until digital screens have become large enough and cheap enough that anyone can get a wall-size TV with a picture that the human eye can't distinguish from reality. After that, Cisco will need to find new growth somewhere else.
Fool contributor Anders Bylund owns shares in Google and Netflix, but he holds no other position in any of the companies discussed here. You can check out Anders' holdings or a concise bio if you like, and The Motley Fool is investors writing for investors.