You are correct. People think they need loads of bandwidth, when they probably don’t. At work, our VPN setups typically mean that most of our laptops have max 3-4Mb/sec throughput, but we are in international video meetings in Teams and nobody notices any issues. In contrast, my home network has gigabit Internet, but it doesn’t mean that the YouTube videos I watch are any better than when I watch them on my laptop (channeled through that tiny VPN pipe). I would need a full house of teenagers streaming video to saturate that connection.
Most of the issues we deal with at work are related to latency and not bandwidth: something like Microsoft’s SMB protocol for file shares suffers terribly with increased latency–in the same data center a 20MB file will be transferred instantly, while a user in Europe downloading the same file from NY will notice it takes a very long time.
This is because SMB is very chatty, sending things in 64k blocks and waiting for the response, so you end up with a max throughput per second of 64KB divided by RTT in seconds. A person in the UK might experience 75ms of RTT, so best possible SMB transfer would be around 800KB per second. A person in the same datacenter might have 250 microseconds of latency, meaning max SMB transfer would be around 250MB per second. In either case, bandwidth is not the limiting factor.
I cherry picked a protocol that is terrible at performance over a WAN, but it is most common in our environments that our application performance is limited by latency.
To complicate things, corporate environments have all kinds of load balancers, edge routers, firewalls, stateful filters, VPN tunnels, and other things that hold up packets along the way, making performance troubleshooting a challenge. For example, a firewall with stateful filtering will likely wait for all packets of an HTTP response to arrive so the FW can reassemble the full response and apply filtering rules, making it appear that packets were held up for possibly hundreds of milliseconds.
Back in the COVID days we had fleeting thoughts of band practice over Zoom and instantly dismissed that as a total non-starter since the latency is so much outside of everyone’s control. Maybe if you have a drummer that sets the groove without listening to the band so everyone can play along as they hear the drum beats; it might be bearable.
This would be similar to how marching bands produce a coherent performance while spread out over hundreds of feet: the beats might come from far away, but they only need to play in time with the music as they hear it, ignoring any visual cues–often the beats come from a hundred feet behind them. In the end, multiple layers of musicians produce a wave of music that is perfectly in time as it reaches the reviewing stand.