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by vineyardmike 1425 days ago
The other issue is that search makes A LOT of money. Even if they find oil, it’s such a small amount compared to search that it doesn’t seem to move the needle internally.

If you look at the opportunity cost of supporting a small side business va building a bigger business.. you drop the small thing. Google engineering is expensive and they have a somewhat polished brand that they don’t want to muddle with a bunch of “non winners”.

Amazon has the opposite problem. They build everything and have to find a way to scale their internal orgs to handle lots of tiny side revenue streams. I signed up for a magazine subscription through Amazon and they had a website redesign that accidentally (?) removed the management portal link for a few weeks. They do so much they can’t even stay internally consistent.

1 comments

Right, that's why for example it made sense from Google's perspective to kill things like Google reader because that doesn't really move the needle.

The biggest issue with that approach is that they're burning customer goodwill, and that affects their odds down the line of getting customer acceptance. Stadia is just another project in a long line of cancelled projects that leaves customers screwed over and less willing to use Google products in the future.

Your point about Amazon is pretty interesting, IMHO I think that's why in the long term Amazon will keep on beating GCP in the cloud space. Amazon having such a large set of offerings is that it makes their cloud offering particularly compelling, especially considering they seem to keep old services alive and have relatively stable interfaces. Their offerings might not be as polished as GCP's, and some of them are laughably awful, but at least I feel confident that Amazon won't change the API or deprecate/retire the service.