Hacker News Reader

Comment by josephjrobison | Hacker News Reader

The problem is that Google’s core business model is too profitable, that nothing else can ever compete for attention and resources.

But you’re right, they need to take the burn for awhile until escape velocity. I think they did with YouTube in general until the ads money hit.

They’re also more geeky and not that creative of a company, nor do they really get design, so some of their blind spots can hurt them from time to time, although that’s separate from their AI issues which yes they have bungled their lead do to fears of the feds.

View on HN

> The problem is that Google’s core business model is too profitable, that nothing else can ever compete for attention and resources.

Interesting, that's essentially Dutch disease[1] for a corporation.

[1]: https://en.wikipedia.org/wiki/Dutch_disease

>>The problem is that Google’s core business model is too profitable, that nothing else can ever compete for attention and resources.

I'm guessing their OKR's go on the lines of building billion dollar businesses or nothing at all. And 'nothing at all' winning at the end.

Very common at large companies. When I was an IT industry analyst I remember talking to someone at IBM about some new business initiative and they basically said if it didn't have serious potential to grow to a billion dollar business at some point, it wasn't interesting.

At large companies, there are just so many costs associated with attention, management effort, and everything else even if an initiative is sort of run "as a startup."

These execs actively kill businesses because in their minds it is either moonshot or nothing.

Its strange because they look at something that makes $200 million an year and think I am better off making something that makes a $1 billion than $200 million. They now shut down the $200 million product, but never succeed building $1 billion product. Net result is after a while you are -$200 million.

Do this with a few products for a few years, you are now just a pie in the sky dream company with no real products and actively shutting down things that bring in money.

Reply on news.ycombinator.com