Whatever’s happening is a prime example of how disruptions happen in tech industry. Previous giants become fossils and new incumbents take the spot. IBM -> GE -> Google etc will all follow the same trajectory towards irrelevance.
For example, Microsoft is famously still doing quite well despite desktop operating systems no longer being the most important game in town. Furthermore, dominant companies actually rarely get disrupted in the sense that someone comes along to take their business, it's that new markets open up that make the old business obsolete. But IBM is still the leader in mainframes, Microsoft still has dominance for desktop operating systems, Google is still dominant in search despite what feels like weekly articles about how search quality has gone down.
Who said—“Two vast and trunkless legs of stone
Stand in the desert. . . . Near them, on the sand,
Half sunk a shattered visage lies, whose frown,
And wrinkled lip, and sneer of cold command,
Tell that its sculptor well those passions read
Which yet survive, stamped on these lifeless things,
The hand that mocked them, and the heart that fed;
And on the pedestal, these words appear:
My name is Ozymandias, King of Kings;
Look on my Works, ye Mighty, and despair!
Nothing beside remains. Round the decay
Of that colossal Wreck, boundless and bare
The lone and level sands stretch far away.”
I chanced upon an ancient cache of code:
a stack of printouts, tall as any man,
that in decaying boxes had been stowed.
Ten thousand crumbling pages long it ran.
Abandoned in the blackness to erode,
what steered a ship through blackness to the moon.
The language is unused in this late year.
The target hardware, likewise, lies in ruin.
Entombed within one lone procedure’s scope,
a line of code and then these words appear:
# TEMPORARY, I HOPE HOPE HOPE
The code beside persisting to the last—
as permanent as aught upon this sphere—
while overhead, a vacant moon flies past.
https://www.buffaloschools.org/site/default.aspx?PageType=3&...
Anyway, I just chimed in to say if you really want to understand that poem, Emperor's Club is a must-watch. I still can't believe they made a whole 2 hour commercial Hollywood feature film centered around that poem.
IBM is also doing well by that metric and if you check, GE isn't doing too bad either¹.
Every incumbent will be replaced eventually². What really matters if these companies are at the forefront and driving innovation or not. Google at one point was at such place and so were IBM, Sun etc. Google has become a shadow of it's past and has become a place to pump up the promo packet and kill products loved by users.
Literally, what are you talking about? IBM and GE have both been shrinking for YEARS now. Even the graph you linked above shows GE's stock where it was in 1997. Just compare either GE or IBM to https://www.google.com/finance/quote/MSFT:NASDAQ?window=MAX
There was a period about 10-12 years ago when Microsoft was basically left for dead
The new startups produce innovation and cutting-edge tech, but we need these huge monoliths for capital-intensive projects. Google has been a driving force in laying sub-sea internet cables across Africa and South America for a good chunk of time now, enabling billions of people to come online. I don't think a small company could achieve that since it costs billions of dollars to do.
Or, alternatively, the giants focus on maintenance and "innovate" through acquiring the new incumbents.
The companies you list build a legal moat around their business (establishing some amount of monopoly) and then begin sucking taxpayer money