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Good question. History (IBM) suggests that they can probably muddle through. IBM just laid off over 3,000 people last month. To quote pg, "Consulting is where
by kyllo 13y ago
Good question. History (IBM) suggests that they can probably muddle through.
IBM just laid off over 3,000 people last month. To quote pg, "Consulting is where product companies go to die. IBM is the most famous example." http://paulgraham.com/startupfunding.html http://paulgraham.com/startupfunding.html
Will google apps stay cheap if googles golden goose (advertising) declines?
No.
Nothing lasts forever. No matter how much we want to think that major corporations are permanent institutions, they have a lifecycle, and when they lose control of their market they may continue along for quite a while in a zombie-like state, but eventually they will wither away and die. Someone outside of Google will eventually figure out a better way to do online advertising, and Google will find itself in the position that Microsoft is in today.
Microsoft is trying really hard to get a new lease on life through a product pivot, but I'm just not sure it's even possible at this point. Their products are generally more expensive and not convincingly better than the competition's.
- ximeng 13y agoIBM has 400k plus people according to Wikipedia, so 3000 is really a drop in the bucket. Stock chart doesn't suggest imminent death either. http://finance.yahoo.com/echarts?s=IBM+Interactive#symbol=ibm;range=my;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined; http://finance.yahoo.com/echarts?s=IBM+Interactive#symbol=ib...
- cglace 13y agoSteady growth over the past 10 years is dying? https://www.google.com/finance?cid=18241 https://www.google.com/finance?cid=18241
- Sven7 13y agoProduct companies require a higher level of talent than consulting companies do. The larger companies get, it just gets harder to maintain that level of quality, and the consequences show up in the output. A Google at 50K employees looks very similar to a MS or an IBM when they were at that staffing level. Look at Intel they have been stuck at 100k for decades. The only exception I can think of is Samsung but this is really over a much smaller time frame so doubt it will sustain.