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> Extracting the maximum amount of money possible is the primary purpose of a company. It’s what you should expect to happen. Except that's not what they are d
by outworlder 2y ago
> Extracting the maximum amount of money possible is the primary purpose of a company. It’s what you should expect to happen.
Except that's not what they are doing. By all accounts (and their financial guys may disagree with me and that's ok), what they are actually doing is trying to extract more money than what the market will bear. They may succeed for a while, but it comes at the cost of cannibalizing your own business.
- griomnib 2y agoWho knows, maybe they are thinking we’ll buy VMWare for $x, use the implicit lock in to extort customers until there’s nothing left in three years, get a tax write off, and pocket $3x.
- this_user 2y agoThey certainly are losing customers, but that also reduces costs on their side, which means lower overall revenue, but higher margins. Maybe they are trying to get rid of anyone who isn't so locked in that they cannot leave, consolidate everything around the biggest and most profitable accounts. Once you know how large that group is, you can squeeze them even further.