alt Hacker NewsLove you Bryan, but:
> Companies that have disdain for their own customers will be reviled in return. Such companies may be able to thrive in the short term, but they do not endure in the limit.
Oracle has endured nearly 50 years. Sun did not endure.
I don't want to live in a world where one of the most successful and widespread corporate strategies is also disturbingly un-humanistic, but we're never going to find a better way unless our mental models for how customer relationships map to business success actually align with reality.
Replies
> Companies that have disdain for their own customers ... do not endure in the limit.
This is a very common sort of wishful thinking that lets people bypass hard decisions. You create a company that loves its customers and employees and vice versa because you want to run a company that way. There are plenty of examples showing it's possible to run a sustainable business that way, and also plenty of counter-examples. There's no guarantee that it leads to business success or maximizes profits, it's just a choice you make.
No love for customers will compensate for a missing strategic moat. Sun placed its hopes on vertically integrated hardware + proprietary OS. Oracle bet on software, that once installed, had extremely high switching costs (similar to SAP). Strategy >> Love.
Literally clicked to the comments to say exactly this. While I agree with the overall sentiment of the piece, this statement destroys the author's credibility.
The next sentence is more defensible:
>> Certainly, these companies not endure as innovators: when coercion is your business model, innovation is not merely unnecessary but actively antithetical.
Oracle and VMware do seem like just rent seekers. I'm sure those rents do pay for plenty of nice things, but it's really hard for me to ever understand Oracle or VMware as an "innovator", beyond their initial innovations (their flagship DB, x86 virtualization).
> Oracle has endured nearly 50 years. Sun did not endure.
IMHO it's perfectly fine for companies to live well, and then be sold. AFAIAC persistence is only proof of persistence. Sun created plenty of wealth/millionaires too. And, by Bryan's lights, it did so mostly ethically. That's a good life.
> Oracle has endured nearly 50 years.
CIA contractors be like that sometimes.
Appreciate the love, but I think you are drawing the wrong conclusion here: Sun failed to endure not because it loved its customers, but to the contrary because it lost track of them: the company was disinterested in the mechanics of running a business.[0]
As for Oracle and its putative endurance, I would liken it to the Berlin Wall: despite the seeming permanence, it is in fact an artifact that history will be eager to forget when given the opportunity.
[0] https://news.ycombinator.com/item?id=2287033