tag:blogger.com,1999:blog-8875196.post2489292799330194706..comments2023-07-14T02:54:12.165-07:00Comments on Ron Burk: Cash Cow Disease: The Cognitive Decline of Microsoft and GoogleRon Burkhttp://www.blogger.com/profile/01502981410880210349noreply@blogger.comBlogger73125tag:blogger.com,1999:blog-8875196.post-41455088608483943122011-02-24T16:21:20.439-08:002011-02-24T16:21:20.439-08:00I can agree, in part.
It's important to remem...I can agree, in part.<br /><br />It's important to remember that Microsoft doesn't merely invest in markets to gain and eventual ROI directly -- some of that investment is defensive of their primary revenue stream.<br /><br />The XBox is a perfect example. What do you suppose would happen to Microsoft's primary revenue streams, if browsing from the livingroom, on the latest Sony or Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8875196.post-10609160190479212712011-01-01T16:36:06.428-08:002011-01-01T16:36:06.428-08:00people think that Apple doesn't have this prob...people think that Apple doesn't have this problem? Apple has failed on many, many things (ever heard of Lisa?). Apple has done the same thing as Microsoft and Google with cash-they're hoarding it. They do not give it back to the shareholders. Please don't insult our intelligence and praise Apple-people have to be called out on Apple's CLOSED system. GOd help you if you ever Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8875196.post-36397917293653411182011-01-01T16:30:19.578-08:002011-01-01T16:30:19.578-08:00I find your arguments come from ignorance. "...I find your arguments come from ignorance. "Cash cow disease"! Wouldn't we all like to have that problem? You could find fault with how any one of us attempted to run a company with this "problem" and yes, it is a problem. The simple fact of the matter is there is a need for more R&D in America and should you find yourself with the ability to fund it, THEN BY ALL Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8875196.post-28502961998910836092010-12-21T21:05:15.924-08:002010-12-21T21:05:15.924-08:00"I once thought that giving a product away to..."I once thought that giving a product away to kill competitors was supposed to be illegal monopolistic behavior, in fact. (It was when Standard Oil sold below production cost.)"<br />I know.<br />"Android may be the best thing ever (or not), but since when do OSes have to be given away to succeed? That's just CCD making sure that no innovative startups can compete."<br />Yuhong Baohttps://www.blogger.com/profile/14519473280837410246noreply@blogger.comtag:blogger.com,1999:blog-8875196.post-46585978908103438722010-12-19T14:07:54.101-08:002010-12-19T14:07:54.101-08:00Ron, as a former hedge fund manager and former chi...Ron, as a former hedge fund manager and former chief analyst for Europe's equivalent to the MIT, I would agree whole heartedly with most of your analysis. <br /><br />Many firms get lucky with an innovation or two and then proceed to keep trying things out without really understanding the key drivers for what makes for good sustainable advantage. <br /><br />A firm named Doblin.com is one Nick Gogertyhttp://www.gogerty.comnoreply@blogger.comtag:blogger.com,1999:blog-8875196.post-34630138802612163992010-12-19T14:07:32.622-08:002010-12-19T14:07:32.622-08:00Boy you've really ticked off a bunch of Google...Boy you've really ticked off a bunch of Google fanboys with this post.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8875196.post-56017254701173504212010-12-19T11:51:03.185-08:002010-12-19T11:51:03.185-08:00Hindsight is 20/20. It's easy to look at the h...Hindsight is 20/20. It's easy to look at the high-profile flops of Microsoft and Google and label them as excesses, but no major product development is without its share of potentially devastating problems.<br /><br />As others have pointed out, Apple took huge gambles (and won) with the iPod, the iPhone, and the iPad. But they've also had their share of high-profile flops with products Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8875196.post-4375916766533055912010-12-19T09:43:16.990-08:002010-12-19T09:43:16.990-08:00Google has a very different model than Apple and M...Google has a very different model than Apple and Microsoft, and therefore its square peg really won't fit into the round hole of this argument. All of its "products" are really just loss leaders or value add's to further cement their brand and repoint all roads to their advertising. They're not interested in monetizing any aspect of these services, unless it's means Marchttps://www.blogger.com/profile/17281247430362171689noreply@blogger.comtag:blogger.com,1999:blog-8875196.post-78186270854799675482010-12-19T09:11:22.099-08:002010-12-19T09:11:22.099-08:00Excellent, insightful article. Clarified my thinki...Excellent, insightful article. Clarified my thinking tremendously.<br />A lot of the commenters here are both dumb and unaware of their dumbness, unfortunately.Unknownhttps://www.blogger.com/profile/17212397327794699083noreply@blogger.comtag:blogger.com,1999:blog-8875196.post-77850340541364863612010-12-19T09:09:27.329-08:002010-12-19T09:09:27.329-08:00Having large amounts of cash is a symptom of "...Having large amounts of cash is a symptom of "cash cow" disease, not the cause. The real problem is clinging too long to a technology that may currently produce cash and not innovating and taking a risk for the future.<br /><br />Contrast Apple and Microsoft. Microsoft's cash cow is the Windows OS and desktop business software. But as the world moved from the desktop to mobile, drwillynoreply@blogger.comtag:blogger.com,1999:blog-8875196.post-5645558599960347202010-12-19T08:49:17.500-08:002010-12-19T08:49:17.500-08:00I'm glad Apple doesn't have Cash Cow disea...I'm glad Apple doesn't have Cash Cow disease. All it does is make money on all of its products. And it makes money from diversifying its products. And it makes tons of money period.James Katthttps://www.blogger.com/profile/07354709429998242229noreply@blogger.comtag:blogger.com,1999:blog-8875196.post-52379588682156614092010-12-19T08:01:38.679-08:002010-12-19T08:01:38.679-08:00Diversifying is not a bad idea when you see the op...Diversifying is not a bad idea when you see the opportunity, trying to ride every horse that's out in the street certainly is. I agree with the Author's mention of the Failure of Microsoft Kin, A product produced in the haste, just to line it up on the shelf with others, without a careful study. When you have investing power like Microsoft, you should only strike the hammer once, but withRickynoreply@blogger.comtag:blogger.com,1999:blog-8875196.post-65267753293187768672010-12-19T07:02:44.915-08:002010-12-19T07:02:44.915-08:00I think the author is being slightly tongue in che...I think the author is being slightly tongue in cheek when suggesting Microsoft should have stuck with office and windows and Google with their search engine. It is clear that other products from these companies is profitable or have helped to promote other products or bind customers in to using their technologies (<i>.Net</i> and <i>android</i> are just some examples) also the importance of whatsthebeefhttp://www.whatsthebeef.orgnoreply@blogger.comtag:blogger.com,1999:blog-8875196.post-49609740294036836622010-12-19T05:27:00.255-08:002010-12-19T05:27:00.255-08:00So...Following the logic of the piece, Bell Labs s...So...Following the logic of the piece, Bell Labs should never have been allowed to exist. Ditto, Xerox Parc. Good thing neither of those loss-leaders ever came-up with anything worthwhile, eh?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8875196.post-73146351918192502032010-12-19T03:33:06.115-08:002010-12-19T03:33:06.115-08:00I think a lot of commenters are missing the point....I think a lot of commenters are missing the point. I think the point the author is trying to make is that to make innovative products, you need more than just smart people. <br /><br />You need a sense of urgency, focus and support from the top. Having a cash cow naturally inhibits these qualities because there is little risk if your product fails.<br /><br />Take Chrome OS. It took 1.5 yearsAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8875196.post-37999798176087792912010-12-18T20:45:13.304-08:002010-12-18T20:45:13.304-08:00Either you hit a nerve with a lot of your readers,...Either you hit a nerve with a lot of your readers, or they have a reading comprehension level of a 3rd grader (no offense, 3rd graders). <br /><br />Unlike what Chris said above, it seems to me that Apple is actually the exact opposite. Most of their product lines pull their own weight. The earlier Apple TV was a "pet project" that had the very characteristics of the Cash Cow Disease, Eugene Kimnoreply@blogger.comtag:blogger.com,1999:blog-8875196.post-7234523421856820852010-12-18T19:54:22.196-08:002010-12-18T19:54:22.196-08:00> encourage engineers to waste 20% of their tim...> encourage engineers to waste 20% of their time<br />> on "projects", like Google Wave.<br /><br />"waste"? Seriously?? Have you any idea how much learning must have come from the effort put into Google Wave, or from other 20% projects that haven't make it as far? And that doesn't even count the increased morale from working on a pet project.<br /><br />If one Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8875196.post-88297896153191740532010-12-18T19:18:44.488-08:002010-12-18T19:18:44.488-08:00At the core of this article, Ron, I think you have...At the core of this article, Ron, I think you have a good point. Which is that at companies like Google and Microsoft (and others) there are projects that are ill-managed and poorly thought out. Projects which would have quickly failed initial tests and been abandoned, or re-worked intelligently if they were designed to stand on their own two feet. But are allowed to continue and bleed because John Whittethttp://basseq.comnoreply@blogger.comtag:blogger.com,1999:blog-8875196.post-39771891713550440192010-12-18T19:11:22.209-08:002010-12-18T19:11:22.209-08:00you do realize gmail was a 20% time project right?...you do realize gmail was a 20% time project right?Darren Kopphttps://www.blogger.com/profile/02983410627874518953noreply@blogger.comtag:blogger.com,1999:blog-8875196.post-29679268485283789692010-12-18T18:36:33.804-08:002010-12-18T18:36:33.804-08:00Wow. A very seriously flawed - gibberish - that...Wow. A very seriously flawed - gibberish - that's the apt word. It sounds like yet another "I will write because I can" article from Apple smitten blogger. (Sorry Ron Burk - I don't know if you are otherwise fabulous but just were having a bad day but I must get that out of my system.)<br /><br />So essentially the author is saying that companies must have a crystal ball which Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8875196.post-44002191465877861172010-12-18T18:29:46.917-08:002010-12-18T18:29:46.917-08:00meh. the issue with Microsoft is that they left d...meh. the issue with Microsoft is that they left developers in the dust of the creation of "dot net" and its bloated city. they killed off developers and they created "partners". Sorry, but developers and SALES PEOPLE are two different beasts.<br /><br />If Microsoft AND Apple (to a large degree) want to survive against Google and many other start-ups, yet to emerge, they&#Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8875196.post-12881037901992262422010-12-18T17:48:43.056-08:002010-12-18T17:48:43.056-08:00Err.. ever heard of innovator's dilemma? Googl...Err.. ever heard of innovator's dilemma? Google/MSFT are just trying (and rarely succeeding) in staying ahead of it...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8875196.post-47873660709613488192010-12-18T16:38:50.333-08:002010-12-18T16:38:50.333-08:00What Burk is saying is that "Cash Cow Disease...What Burk is saying is that "Cash Cow Disease" is negating the process of natural selection in business. A project like Xbox would have been cashiered long ago, as soon as it became clear the ROI would be negative and Microsoft would never recoup their initial development costs. Having a "Cash Cow" puts off those normal business decisions that smaller more nimble companies do Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8875196.post-83692111778398115302010-12-18T16:14:37.629-08:002010-12-18T16:14:37.629-08:00I think your article does make some interesting po...I think your article does make some interesting points. Microsoft should plead guilty as charged.<br /><br />However, I think Google has the capacity to innovate. Some of their products like Google Maps, Google Voice, and Google Earth are impressive. Their decision to monetize via advertising rather than direct sales to consumers is also innovative.<br /><br />Every high-tech company should be davesmallhttps://www.blogger.com/profile/02547783904200398672noreply@blogger.comtag:blogger.com,1999:blog-8875196.post-22615907950709188372010-12-18T15:42:25.689-08:002010-12-18T15:42:25.689-08:00> Apple suffers from the same disease. Instead ...> Apple suffers from the same disease. Instead <br />> of focusing on building their Mac PCs, they<br />> started building music players, phones and <br />> tablets....<br /><br />Apple's iPods, iPhones, and iPads are profitable in their own right and in fact bring in more profit than the Mac. Even iTunes, which could be a loss leader because it sells devices, is profitable. A keyHamranhansenhansennoreply@blogger.com