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IBM to acquire Confluent

(www.confluent.io)
443 points abd12 | 1 comments | | HN request time: 0.217s | source
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JSR_FDED ◴[] No.46192996[source]
IBM have an absolutely stellar record of blowing acquisitions. The highly motivated newly acquired team will be in honeymoon phase for 3 months, and then it slowly dawns on them that they’ve joined an unbelievably rigid organization where things like customer satisfaction and great products don’t matter at all. Then they’ll be in shock and disbelief at the mind boggling Byzantine rules and internal systems they have to use, whose sole purpose is to make sure nobody does anything. Finally, the core IBM sales force will start to make demands on them and will short to ground any vestiges of energy, time, opportunity and motivation they might have left. The good team members will leave and join a former business partner, or decide to spend more time with the family. They’ll meet often at the beginning to relive the glory days of pre-acquisition and recount times where they went went above and beyond for that important early customer. But then these meetings will become fewer and fewer. Finally they’ll find a way of massaging their resumes to cast the last years as being “at the heart of AI infrastructure”.
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1. samiv ◴[] No.46194792[source]
That's a very cynical take. Unfortunately likely correct.

It's a fact that a publicly traded company is beholden to Wall Street and any time such a company would use their earnings for R&D the P/E and margins go down (i.e. spending more money to earn the same) and this is considered a negative signal at Wall Street and the company gets punished in the market.

So the only way a company can spend their earnings is to pay dividends or buy assets such as other companies, which then must be squeezed for margins.

More here:

https://www.cringely.com/2015/06/03/autodesks-john-walker-ex...