The IBM-ification Of FAANG
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- Опубліковано 27 тра 2024
- Once upon a time, FAANG companies used to be the playground for the smartest engineers, inventors, and product managers. But, as these companies reach market saturation and growth starts to slow, it seems that FAANG is entering a whole new era. An era marked by bureaucratization, degrading talent, and cutthroat corporate culture. This is precisely what happened to Gen 1 tech companies like Cisco and Intel 20-30 years ago. As these companies became more established, they no longer appealed to individuals who wanted to create the next big thing. These individuals naturally moved onto Gen 2 tech companies like Google and Facebook. Meanwhile, Gen 1 tech companies were left with people who were largely there for the paycheck. It appears that this same transition is happening with FAANG as well as the smartest talent moves over to gen 3 tech companies leaving FAANG companies to become the next IBM or Cisco. This video explains the slow degradation of FAANG and the IBM-ification of modern big tech.
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Timestamps:
0:00 - The Fall Of IBM
2:18 - Degrading Talent
5:34 - Inescapable Bureaucratization
8:41 - The IBM-ification Of FAANG
Resources:
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You either die a hero or you live long enough to see yourself become IBM.
that doesn't sound that bad
🤣
You mean a company that works on the forefront of AI, quantum computing and computer interconnectivity?
Why does Zuckererg always look like he's a 2015 AI generated character?
I thought ibm was dead but now that I’m looking for computing related jobs I realize IBM is the real innovator in the room
To be fair Microsoft has always been the odd man out as far as FAANG went seeing as how they predated all other FAANG companies by over 15 years (remember their first product was Microsoft BASIC for the Altair 8080) so it makes sense for them to act as the adult in the room.
Apple was founded in 1976, so it's not like they're a new company.
@@KRYMauL Ah forgot they were a part of FAANG fair point however unlike Microsoft Apple really only properly exploded with the iPhone.
Microsoft had like 5 years of backup cash so if they don't make a penny they can still operate without an issue
@@KRYMauLTbf, Apple pre-1997 vs Apple post-1997 are two very different companies
i hate MicroSoft
The absolutely bonkers bureaucratic nightmare of FAANG (and business in general) can really be traced back to the fact that we've spent decades with business "schools" churning out MBAs that amount to little more than how to recite buzzwords in a way that will signal to other people with buzzword degrees. They add little/no value to the actual process, and frequently have no actual experience beyond an MBA.
I think ultimately all bureaucracy stems from the limits of how many people a manager can manage. If a manager can effectively manage 6 people then there will be 5 layers of management at a 10K sized company, and so on. The more layers you tack on the more politics inevitably arises (there's no stopping it because it's literally natural selection favoring the corporate ladder types of people over real talent).
The billion dollar question of the future is how to make a company work and scale without so many layers of management. The traditional idea has always been flat hierarchies. It seems to work in some places like Valve, but comes with its own problems, and encourages its own politics because people won't have bosses looking over them at all times. Perhaps using strongly enforced surveillance on employees would work, effectively automating much of the work that a manager would do. The newest LLM technology could help with this too, for example to quantify how much real work people are putting in per day. "Surveillance for the greater good" could be a worthy price to pay if it means avoiding bureaucracy in the long term.
A newer idea is outsourcing the work to the userbase and then rewarding them for it. A great example is Roblox - if they didn't go public they could remain with a small team while staying huge and influential due to their userbase doing the work for them. But this might only work in the video games industry or some form of app stores. Elsewhere, it's hard to get people to write code for you for only a revenue share arrangement.
It’s called compliance
@mavand4476 what did lawyers do, they're just doing their job. Not saying you're wrong or anything I'm just confused and wanna learn why
They're more about protecting their existing capital rather than expanding it, it's exactly the trap IBM and Microsoft are already in
The first man to learn how to read was very special until thousands learnt.
It may be worth noting that the people in the engineering pyramid (Engineer II ~ Principal Engineer) aren't necessarily managing each other in layers. The title mostly conveys that employee's experience level, and they are still typically an individual contributor, at least at the company I work for.
That’s true. It’s very much a role distinction.
However, the older guys (Staff/Principle) are definitely spending more time helping and unblocking others and doing some project management as well.
Pretty sure it is the same with the manager pyramid. I doubt it is the case that Manager 2s necessarily report to Manager 3s.
Exactly and there is likely a manger track and an individual track, so engineers that choose manager track will never become a google fellow
Yep. This is why I’m skipping these kind of youtube videos lol. They’re often poorly researched.
@@user-cr1iz8fw6hit doesn’t change the point in the least
It’s funny when people think IBM is dead. They’re massive.
They went the dark route hahaha (b2b)
@LogicallyAnswered exactly, they're "behind the scenes".
Never ask a man his salary, a woman her age, IBM what they were doing in the mid 1930's and early 1940's
@@LogicallyAnswered IBM was always B2B. They never really played in the consumer market. PC was a "reverse flop" because IBM did not expect the platform to be so successful. They did not invest enough - the reason the engineers went with components already available in the market. Even their laptop line (Thinkpads) were business oriented machines. The most "consume" product they had was Lexmark printes. And they sold everything.
I worked for IBM for a short timem few years ago. The company still sells mainframes and makes a lot of money with consultancy.
They are massive in the same way the Rothschild are massive. Nobody is sucking them off apart from the money.
I work at a FAANG company, emphasis oh the "G", and it just feels so lame and boring now. I really want to work in a smaller environment/company because you feel so small and unimportant in the grand scheme of the company. You're right though the stability (for now) and the decent salary make it hard to jump ship.
Ah, know what you’re talking about. It seems like that’s a trend at FAANG nowadays. Jumping to startups or smaller companies in general.
@@LogicallyAnsweredWhy not? Your earnings potential is based more so on how hard you work in a small start up versus the politics of a big company and its nuances.
@@GigaChad_169Sadly, assuming the startup is not part of the 63%* that don’t survive past 5yr, no matter your own “hard work”. Hence the stability.
* taken from a search result, it’s actually more survival than I thought
@@ivucica I worked for a startup, and their schtick was copying other companies, including the current hot company. When the current hot company started to do screwy stuff, they copied. It was horrible. It makes corporate work look very nice in comparison
Now if they took the good out of said "screwy hot company of the year" and threw away the bad stuff, they might have had something. However, when the company was running out of money and the startup still cloned their ideas, many in Silicon Valley could tell that the startup was running out of money
Yahoo's mess with Marissa Mayer was the shareholders wanting Yahoo to the Sears Holdings of the tech world, for example
@@GigaChad_169because FAANG pays SOOOO much better than 99.9% of startups. I’ve worked at both.
I agree with what you said, but the reason people play the interview game is because these companies have absurd interview processes, so the only thing people are going to care about is getting and passing the interview, everything else about the company is secondary.
Also playing the "game" instead of doing great work for promotions is very true. I remember someone who worked at Meta would talk about how it matters on WHAT you work, rather on HOW HARD you work. If person A works less hard than person B, person A can still get more appreciation than person B if person A works on a project with visibility or a flagship product. This leads to weird team and company dynamics where it all feels fake and less cohesive. It incentivizes people to do anything they can to get the chance to have one line of code on a flagship product rather than working on impactful, but less visible stuff. I think that's more a symptom of the company being big, where everything feels more impersonal and more like a game. It's not really a surprise that a lot of employees there only care about their salary.
Also, I'm not saying all employees act like that, I'm just saying that I've heard that some employees act in a way that isn't useful to the company but results in more visibility from upper management.
Ah, that is really is quite a great point. Makes you question what really matters at these big companies.
Yeah this is a problem for ALL companies not just tech/FAANG. The fact that how you get noticed and promoted is not doing the best work.
I am inclined to believe the only way to solve this is to use an objective way to judge people's contributions that are unaffected by biases, rather than relying on humans in the corporate ladder.
One example could be that surveillance software is used to record people's activities into some form of text encoding, then a LLM or similar is used to judge how much innovation/impact the person made in a certain time, but with no human in the loop this could be gamed. Another way could be for the LLM to summarize the person's work to a higher-up several levels removed from them, who can glimpse through it and then make decisions to promote people based on how much their work is contributing or innovative. Each higher-up is tasked with judging 100+ employees, and each employee's work is summarized by different AI's and then judged by multiple people (even by the CEO/board directly). This system is hard to game especially if the AI summarization and judging processes are kept secret - and with a human in the loop, any "strategies" people find to be promoted will quickly be overdone and seen as less innovative by the higher-ups, which automatically balances out the whole process. And because the judges are several levels removed, you can't game your way to becoming the judge, which means that these people can't promote each other and spread virally in the company.
Effectively these technological solutions could do what Google's CEO did with personally interviewing every employee, but scalable to a much greater level. You are basically giving employees standardized tests every day, except they don't know what's being tested and they thus just have to do the real work to be promoted, which is exactly what you want to avoid bureaucracy
@@LogicallyAnsweredY, interesting.
Not to mention I heard from Hackerrank: "Google does this, so we do this as well!" You always hear companies talk about the Google Of. For a while, it was being the Uber Of
As someone who have worked for two of those companies, you have absolutely no idea how many truths you're actually saying and how many employees have actually realized that long time ago with all the changes, layoffs, gate-keeping and lack of innovation over the years.
I am not from tech but I do share a building with an office of one of these FAANG company. I got to know a guy who is a principal engineer who got fed up with his salary so he tried to jump ship but found out that the compensation package has been largely reduced within the past 2 years (same job, 250k in 2019 is now offered at 180k with less stock option). Are you experiencing this in your field?
I’m Elon musks son 🙄
@@hotwind95Yep. The hiring was crazy in 2021.. now its cooled off a bit with uncertainty about the economy but these things go in cycles.
I think the IBM-ification is the ultimate form of a tech company. Like molten lava cooling down and becoming one with its environment
This is exactly why I left FAANG for a smaller company. The stagnation in EVERYTHING is astounding
Those are the situations where you show up for the paychecks, and start your own side gig startup in your free time.
It's not necessarily an IBM-ification, more of a trend that happens to every large company regardless of industry. Explosive growth when it's small, then as bureaucracy is set up to handle more staff, more money, and more responsibilities it becomes more sluggish and less likely to take chances. Once a company gets large, it usually only grows by acquiring smaller, more innovative companies - exactly what FAANGs have been doing for a decade or more. Jane Jacobs covers this in one of her economics books (decades before FAANGs, except Apple, came into existence), although I can't recall which book it was specifically.
Exactly. This video makes it sounds like this is unique to tech. This is how any gigantic corporations work, and tech is not special.
@@wafercrackerjack880 Shh... Don't you know that tech is special and nothing has ever been invented elsewhere?
Stop being technical about this. It's IBM-ification.
@@wafercrackerjack880 Does he ever indicate that for you to be this whiny?
It's not being technical about this, it predates IBM's very own "IBM-ification" and isn't some special tech phenomenon.
Facebook, Amazon and Google don't even deserve IBM-ification, considering the damage they have done to society.
Savage
And the damage they all have done to privacy. Especially Facebook and Google. (Apple and Amazon ain't saints either)
Amazon and Google probably are still net benefits to the world. Facebook is very debatable.
@@ltccat2262But you still use it. People don't care that their Data is being taken. They love the convenience from Google and the apps from Meta. So ya can't blame em
You are talking like IBM didn't do their own damage.
Just because there are ten separate titles does not mean you have that many reporting layers. As an example, I’m a manager reporting to a director who reports to the C suite. On my team I have an engineer 2 and two principal engineers. Google likely has five or six levels of hierarchy, given the size of the company.
Isn't apple already a legacy tech giant like ibm that stood up in their legs
You could say that
@@LogicallyAnsweredthat’s a shame because I always felt like I appreciated their design philosophy:
if a 5 year old can’t use it it’s not good enough
A big problem is just that, you can't push the stock up if you are already super over valued with growth expectations.
Can't speak on the other companies, but apple has kept up growth for the last years and doesn't seem to be slowing down.
@@ZoeyZweeapple’s growth is mostly artificial as is with most big companies
you wonder if the reason that meta is continually trying to reach for the next big thing is because the original founder is the ceo. Founders are always more ambitious and risk taking than the regular ceos of the other companies
00:03 The rise and fall of IBM's dominance in the computer industry.
01:40 FAANG companies are undergoing a transformation similar to IBM's fate.
03:12 FAANG companies are facing challenges in maintaining hiring quality at larger scales.
04:45 Candidates join big tech for personal gain
06:20 Tech giants have extensive layers of management and hierarchy.
07:45 Google's tactics to cut compensation
09:14 FAANG companies are shifting focus to stability
10:40 Big tech companies like FAANG may become background companies in the future.
IBM has been trying pretty hard in the background to invest in the future. They're been working on quantum computing and AI for a while and I recently heard they're introducing tape storage which isn't exactly new but given that we're getting closer and closer to reaching the physical storage limit of a hard drive/SSD, tape storage will likely be the way forward for big companies (namely FAANG)
Didnt lenovo bought that branch!
any references for the physical storage limit and tape storage claim?
I love how he indicates Lenovo was a knockoff. I think by that he means IBM sold off the business and that became Lenovo
No. IBM sold its PC business to Lenovo, which was an already existing company that was making, as we used to call them in the 90s, "IBM Compatible PCs".
This isn't just FAANG or IBM or big tech. This process happens to any complex, organized system - companies, countries, economic systems, organisms, ecologies...
Management in Google is crazy. :')
Indeed
I’d say consumer ai firms like OpenAI & digital infrastructure companies (website builders, no code dev sites, etc.) are next in line to follow the same trajectory as FAANG.
let's be real, the next major growth opportunity is in something else that isn't apparent yet. Computers, "AI" etc will play a role because those are the tools now, but they won't be what excites normal people to buy the product. This is already true in FAANG, facebook and google are advertising companies. Apple makes phones and barely innovates in any way consumers care about. Netflix never was a tech company to regular people.
Microsoft owns 49% of OpenAI lol.
I don't think "engineer 2" and "engineer 3" indicates bureaucracy - they are just different pay windows that ultimately have the same seniority. I agree with the rest though
Fair enough
Why have different pay windows for the same position?
@@mycelia_ow more experience
@@mycelia_owbecause some people are better at doing jobs than others.
It is with great pleasure to inform you, that after watching so many great videos here, I've finally subscribed to the channel 🙂
Nvidia is clearly the next tech giant, and may even become the most valuable company in the world if this generative AI thing lives up to even a fraction of projections. Tesla could also diversify outside of just cars into other types of software and hardware.
Why do you think tesla would benefit from diversifying? Sure, they have great brand value, but my understanding is that they're behind on self-driving technology.
@@altertopias It will start with vertical integration (in-housing different parts of their supply chain like lithium refining and battery production). This will lead to advantages in other fields like generalized energy storage in non-automotive applications. They have already started this with their megapacks and power walls.
Self-driving is a decade or more away, but all the data they are gathering could quickly become useful for other fields of AI like computer vision, neural networks, etc for warehouse automation and other applications.
@@WillieFungowell tesla better hurry up because byd has already done all of those things
@@WillieFungoif it wasnt for the usa banning byd from being sold tesla and europe forcing massive import taxes doubling the prices tesla would already be out of business
For example all of teslas engines and batteries come from byd lmao imagine having to host hardware from your competitor
Facebook Amazon Google Microsoft Apple Netflix, acronym in this order would be better than FAANG
😂😂😂
Smart😂
IBM stock just jumped - they’re starting a revival to be the AI and hybrid cloud leader. There’s still room to innovate for enterprises, with AI, Quantum (Cloud is great for some, but they still make the worlds most resilient and cost-efficient systems for enterprise that run most of the worlds transactions (and now embrace Linux(ONE), opensource, RedHat), in a world of daily cyber risk.
It's funny, they were way too early to the AI game - I remember Watson playing Jeopardy, but they never had a hit like Chat-GPT
I used to work at IBM. their money is in sales, consulting & legacy banking now & they’re looking to pivot to quantum to get back into competitiveness. So we’ll see.
Just because you don't see IBM everyday doesn't mean it's dead. Before the IBM PC IBM made mainframes and now IBM still has as far as I know majority market share in mainframes. They also are one of the biggest producers of supercomputers.
IBM just knew they couldn't compete Dell, Compaq, Tandy, and other companies with making the cheapest most powerful desktop because they weren't willing to risk becoming low quality.
All of the modern Big Tech companies have massive B2C businesses. They're not going to ossify any time soon.
Apple gonna be worth 4T with a PE ratio of 15 or 20
You can make good money in b2c, but in b2b the sky is not even the limit...
Just see at Microsoft, a single b2b user if fully cloud licensed generates per month the revenue of a b2c family... In regards to office products and storage...
IBM is pretty chill company to work for than the other competitors. Less focus on market appeal anf more narrow focus. Besides IBM was the main contributor for computers in the past.
Starting 2024 with a bang. I look forward to all the upcoming education content over the next several months.
Thanks man! Hope I don’t disappoint
More like starting 2024 with a FAANG
People fail to realize, that almost every time they make a payment via card, receive their salary in their bank account, book a flight, buy insurance, buy a new car and etc. IBM is behind the scenes in all of those things. IBM is far from being dead. Nearly every transaction goes through a mainframe, and we are the only ones who make those, support them and update them with the latest tech.
If IBM dies, it takes 90% of the financial system in the world with it.
nice video, background companies are allways biggest, as they sell at normal prices and the buyers only care about cost and not about morality of the company
Worse, when a company tried to market it “morality” they usually do so by pandering to just half the country or less
About their employee quality, diversity hiring is a major factor in that.
They have become MBA destinations. Now it's corporate politics that determines progress, not merit.
I guess we can add NYSE:CRM to the list
I work at FAANG and a few of my managers are ex-IBMers lol
Which one? If you don't mind me asking. Because I'm studying CS right now and these are my dream companies.
@@yagnikbose8973 I work at AWS
Subscribed good content love the knowledge u give
🙏
everyone becomes ibm eventually 😔
Even people become IBM once they have kids
@@upstanding_citizen can confirm, i'm in a tech company but i'm feeling pretty ibm rn
ibm is like me fr fr
New money is becoming old money. Preserving wealth instead of risky short term gains. Even bill gates is going into real estate.
That’s a good question at the end. What will be the new FAANG of the next generation? I’d say companies that produce unique innovative products. So maybe the real question is, what will be the new innovative products of the next generation? I would say something in battery technology. Like a new battery that has ten times the capacity and charges in 5 minutes.
Also farming technology, in the next decade or two we should see AI robots that tend to farmers fields reducing the need for fertilizer and other inputs and increasing productivity by a factor of two or more because each plant is individually tended to and given exact what it needs. This technology is already past testing.
Another one would be quantum computing. How far off that is is up for debate but I think eventually they’ll have quantum computers commercially available. 50+ years? 🤷
Brain-computer interface technology like what’s being developed at neuralink could sell millions but I don’t think it’ll have widespread adoption.
That’s a few viable ones I can think of. Now which companies will lead in those potential technologies I don’t know. There’s a good chance that established tech giants may do like Microsoft and buy up emerging technology startups.
I highly doubt any of the things you mentioned. would be the next big thing except for maybe quantum computing. I feel like for something to reach faang status, it has to have mass universal adoption by the common folks. Not a niche product.
I would say 2 good candidates are already here, tesla and spacex, specially tesla, if they keep improving the AGI for its cars and robots, the market is endless and is mostly winner takes it all...
@@rui518Tesla and neuralink might definitely dominate this next Agi era and will be next big tech
@@themplanetzquantum computing is definitely next big thing
@@tfkdandsvkcironically, IBM has some of the most advanced quantum computing tech on the planet
Wait a minute. you're the guy who did that video on fang salaries?
you do leave out a crucial detail in this video. and that's that the manager chain isn't a reporting structure. it's a promotion chain. it's not uncommon for managers to report to people who are five levels higher on the promotion chain than they are
Linux user here. You can't argue that Apple Silicon was a massive innovative move tho. They bet big on RnD. One could also say that it is easy for them with all that cash.
This video is on point, especially regarding many people who work at FAANG (and I think it's universally true about any "big-name" company that gets big). It's obviously not true for everyone, but many people seem to just work there for the money and prestige, and not genuine passion for the products or technology.
In the past 10-15 years, all the money and prestige went into the tech industry so now so many MBAs want to get into tech whereas back in the day the "prestige" was in investment banking, consulting, etc.
This will have huge ramifications going forward, the P/E of big tech stocks looks nothing like IBM yet. Imagine what a permanent 20-30% decrease in the price of these companies is going to do and the capital that will be freed for actually innovative companies.
Oh, this video isn't at all what I thought it was going to be about. I thought you were going to talk about how IBM is still secretly an extremely powerful tech company that everyone has merely assumed died off. Their Qiskit development and advancements in atomic storage are far more exciting to me than anything to do with their Power Systems or other mainframe infrastructure. If they develop commercially viable atomic storage that will be a massive breakthrough.
Yeah, IBM just sucks at marketing, but they sure do many cool things. Also, almost the whole world runs in IBM, including FANG/MANG.
In Feb 2024, IBM handed the pink slip to a huge % of its CIO office employees (40% in Europe, 20% in India it is claimed by an internal grapevine), and now US (% not yet known) in Mar. What is the actual in numbers, I am not aware, but noone seems to be talking of this. Perhaps this is "normalized" now.
Great video as always
Thanks for being here as always Balpreet!
As a human being, and notably not a business entity myself, I am prepared to take the courageous stance that companies "naturally" trying to minimize their compensation is, indeed, a bad thing
IBM may as well be an Indian company at this point
They are just and outsourcing business
Cost cutting is what companies do when they don't have new ideas.
Aside from OpenAI, I struggle to think of companies that are both established and cutting edge enough to replace these big tech names
And OpenAI still isn't even profitable, so it's still in relative infancy.
Plus OpenAI is already controlled by Microsoft. They own 49%.
IBM also changed their focus. They sold out of the low margin consumer market, but is still market leader in hardware, cloud computing, consulting, quantum processing and the business to business market that is generally higher margin. In November 2022, the company came out with a chip called the 433-qubit Osprey, which was market leading product and among the fastest available. Overall, what you say is true especially for consumer electronics and too much chasing of profit margin over market share or leading the market.
How the internet was made, and the innovators.
Two grand books that helped me understand stuff beyond what I slap my balls on.
Could you make a video on compaq
To be honest at this point netflix isn't worthy of being in faang, it's nvidia now
Thanks for the suggestion man
Nice video again! Logical steps are much smaller, which is a good thing--more rational. Like the analysis. I think one of the new FANNG companies already is Telsa and Space X. Non Elong FANNG companies...idk.
However, the big tech companies have the advanatge that they have so much money they can buy any or all of the upcoming companies that could ever challenge them, thereby guaranteeing their dominace imperpetuity
Exactly. Just what Microsoft is doing right now. And they also have the cash to pivot to the next big thing if the need arises.
Exactly like Big Pharma
Maybe we need stronger antitrust to shake things up and foster more innovation. Seems like companies after a certain size just become a holding company for all their dozens of acquisitions.
Imagine including netflix to faang but not microsoft (you can call it faamg), i mean who tfk is netflix compared to microsoft!
FAANG partly includes some of the companies because the letter is instantly recognizeable. You can't include M or Microsoft because the M font looks too generic. You could argue that Netflix shouldn't be in it, but the N really works well
Faang is far from some great name and Faamg is almost the same, stop smoking😀
@@lukazupie7220 lol, Faamg is a horrible word 😆
@@JBuchmann that is not the point of my disagreement tho😀
MANGA
One of the members of the new FAANG doesn’t even exist yet and its founder is probably in Harvard, Yale or Stanford looking to drop out and pursue their big idea 😂
Or a Public Ivy or probably typing this comment
0:28 the forecast was for 200k per year, reality was 200k per month
In capitalism there is a very basic pattern. When there are a number of small companies competing against each other, they try grow by providing better/cheaper services/products to their customers. But as they grow there is a tipping point where it make more business sense to stop focusing on the customer and instead focusing on becoming a monopoly or semi monopoly, because ultimately monopolies can charge more for worse services/products. So the business changes from being product focused to being focused on things like patents, buyouts, dirty business practices and more. The makeup of the workforce changes from product producers to lawyers and executives, the bonuses shift from production targets to stock returns. This trend that is a part of capitalism can only be countered by having anti-monopoly legislation, but obviously companies counter that by getting involved in government. Which is why the most capitalistic nation on earth is also the most corrupt.
It's actually MANGA face book is meta remember
Hahaha
If lizard-man stepped down at Meta and some MBA suit took over, you know they are cutting off all the metaverse BS.
Manager 1-3 aren't layers. They're bands for pay raises
Not just legacy, but "annoying" legacy.
I don’t think you accurately covered the scale and more so IMPORTANCE of IBM especially in things like supercomputing and deep learning/ML/etc
This is happening around us.
What should we do to save ourselves?
Google has officially started to stack ranking like Amazon now according to a Blind post from an L7 software engineer.
Same happened with Nokia
If any of these companies were smart, they should create a "cash/entrepreneur fund" which is 1/2% of Google's net for example, and 10% of that going to these ideas once there is a proof of viability/customer acquisition; successful engineers starting their own new company could get capital injection directly from Google, but Google owns a considerable amount of those companies, and pays the founders a very modest salary until hitting reasonable milestones. That's what I'd do anyway.
This man is the biggest danger for FAANG.
*The Fastest Growing UA-cam Channel* 😊❤😂🎉
🙏
Netflix should be replaced with Nvidia these days..
Hahaha, isn’t that already a community wide consensus??
@@LogicallyAnswered If so, I had no idea! Great job with the videos
Forget FAANG, if there is one corp that's on the way to IBMification today, it's Intel.
Great video!
Dude. How the hell do you release a new video every two days?!
On the grind hahaha
@@LogicallyAnsweredIs it just you and your editor doing this?
Please do make some videos on startups which have the potential to become gaints in future
I mean there’s another major reason to this and thats American corporate culture thats based entirely on driving up the stock price.. so of course they pivot to something that generates maximum profits with ease once they can.
Meta created threads because they saw an opportunity. They’ll drive up stock price for a while with threads user growth. Its basically a copy of twitter though.. whats so innovative about it?
I am a programmer, I work remotely, and I will for the rest of me life.
Seriously IBM is more important now than ever. Just not visibly to average consumer
So in summary FAANG have all decided to slide into their comfort zones, the first step to obsolescence if you ask me.
FAANG? We used to use a different acronym. It included Microsoft, and it was a little pollitically-incorrect.
Politically incorrect? I need to hear this acronym now lol
@@johannvaniperen7249
Facebook
Amazon
Google
Microsoft
Apple
Netflix
@@johannvaniperen7249Facebook Amazon Google Microsoft Apple Netflix
Enteprise IT guy here.
Nice arguments on the bureaucracy and talent challenges.
One thing that intrigues me is that it seems like one of your arguments is that enterprise IT is flat out boring (09:00).
Yes, Meta is exciting, Old Tech (msft, ibm) is not.
But which company has products that have a clearer use case and fit-for-market?
Meta has been struggling to bring Metaverse mainstream for the last half decade iirc.
On the other hand, the old tech guys are still powering businesses the world over, as you said, in the background.
Great video Logic and I hope I don't see google becoming like that because if google does then it's no more youtube for the viewers :]
I don’t think they’ll be ditching UA-cam anytime soon hahaha
There's always other platforms like Odysee and Rumble. Once UA-cam fades out there will be other websites to replace them. Happened with Vine, now we have TikTok. Happened with Twitter, now we have Mastodon and Nostr. There's always somewhere else to go.
It happens to every industry when they become mature, The big companies have so many products to sustain it is hard to focus on what is new. It is the taming of the wild west that tech once was. What is the new frontier? I couldn't tell you. Some say AI, some say Quantum Computing, but I will just stay adaptable and be ready for what comes.
I hope so we need new tech companies
PERFECT!!
There is a term for it. Shitification. When firms reach their peak and then get worse.
It’s nature of company revolutions
I think Apple is missing out on perhaps their most important opportunity. They should be in bug fixing mode. They should also be fixing/improving their development tools. Basically, shore up the foundation on which the company is built. While they are at it, they should make sure that their hardware really is top quality. Premium price. Premium under the hood.
New money is becoming old money. Preserving wealth instead of risky short term gains.
Surprised this didn't mention Tim Cook's background with IBM!
Something I find interesting is that the only FAANG companies that still have their founders as CEO's are Meta and Amazon. While Amazon isn't betting as big on disruptive tech as Meta? It still is the most diversified. Most of the other CEO are people who can run mature businesses not startups.
That said, I don't think the big tech companies will go the way of IBM. They're going to remain in the game until new tech comes to disrupt them. The thing is , though, that the biggest potential disrupters, AI and VR, are areas where FAANG still dominate. There really isn't a way for a mature business.to.act as a startup. It's why Microsoft for example.is invested in OpenAI and Xiaomi keeps putting money in small innovative startups
It’s actually just Meta, Bezos is still involved but he’s no longer the ceo
Repeal software patents and watch these old monoliths crumble when actual innovation overtakes them.
😔 I'm sending them a letter from my future ancestor in order to save the company.
I work at a startup as a data eng, guess what was the response from high management to inefficiencies? Creating PMs for the existing PMs lol
To be honest, from what I have been seeing, this thinking of oneself seems to be endemic with a new generation of workers coming out of the university system. This can be even seen in small low employee businesses. There are a lot of people who get employed that "interviewed well" but bring in next to nothing in regards to ability, esprite de corpe, and work ethic.
Software developer here… I think the next big tech companies will be the ones that address the biggest issues we have now in the world. Green tech, advanced manufacturing automation, automated logistics, robotics & robotics programming. How can we do more with less? I think this is where legit value can be added, no longer the attention economy selling ads
Most of those already exist but their B2B. The only ones people know are EV companies like Tesla and BYD. How many people can name the biggest solar ,. wind or battery companies. Most are Chinese yet even most Chinese people cannot name them. Everyone knows Siemens for it's appliances, not for it's leading edge automation tech. Look at 5G,. even with all the hype, most people aren't aware of Ericsson, Nokia or ZTE as major 5G producers. Huawei is more known because of its phones and the sanctions. Just like most people know open Ai than the people who make AI chips possible.
You should do a video on what happened to Icon Health & Fitness.