Reply to post: Re: Hang on

Is that a Veeam in HPE's eye? IT giant may gobble backup biz

Peter2 Silver badge

Re: Hang on

Generally not. The problem with large companies buying smaller ones and leveraging their experience to increase profitability means something similar to the below in the real world....

Fire all of the decent support staff at the company they've just bought and outsource the support to India because it's cheaper. Then replace the managers who built the company who are now retiring with the proceeds of sale with a committee of experienced managers who've never used the product (and never will) to consider the future direction of the product and company.

The developers paid in proportion to their high talent leave to other jobs (replaced with generic developers from $largecompany who couldn't just walk in most companies to a joyous welcome) and the price of the product gets jacked up to the point people say "screw this, I'm using something else" at which point the same managers calculate if the number of customers leaving is worth the increased price.

A few years later, they wonder why their install base has stopped rising by a few thousand a year, and is now dropping proportionately.

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