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I think that there is another variable at play over here. Google needs to prove to Wall Street that they are a "serious" company. They have received a lot of rubs over their engineering culture from investors, and business onlookers. I've read people write stuff like " when did you last 'wave' someone?" etc. If for some reason Google faces a lean time, then such practices will be viewed as an excess by them and it will deprecate their evaluation.

So, what could appease almighty Wall Street better than this signal that Google is willing to kill a product, no matter how exciting, if it doesn't meet its bottom line?

In a way this is a really clever compromise, but taking such decisions may in fact hurt Google in the longer run by diluting its culture. Sometimes, the most promising of technologies is not economically promising in the shorter run, but who'll explain this to Wall Street?



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