Some of the general public is under the belief that the best indicators of the performance of a technology company is how it does on a given day on the NYSE or the NASDAQ.
While these are, indeed, good indicators of a given company’s performance, it is but one facet of the total picture. To illustrate, let’s suppose that company JFK has had a record of success in the stock market, generating, as an example, 30% profit each quarter.
Not bad in and of itself, but now let’s also account for the fact that, from a standpoint of end – users / clients, the company isn’t doing very well, either because the company didn’t honor a number of its issued warranties, or because it didn’t do this, that or the other.
Ask any industry insider and they will tell you that some of the fastest ways for a technology company to fold, are because of an acquisition or because it may have violated Anti – Trust laws or because it thought certain technological advances, such as ‘Cloud Computing’ were too expensive for it to invest in and implement or for any of a multitude of other reasons, like not honoring its warranties and having subsequent complaints filed with a particular state’s Attorney General, and so on.
Unfortunately, more and more technology companies are falling prey to this, as well as companies like Microsoft, who have not only had to contend with multiple anti – trust suits, but also, more recently, have made a determination that stepping into the world of what is called ‘Cloud Computing’ (which refers to certain computing services being performed over the internet, such as Software as a Service (SaaS) or Platform as a Service (PaaS), as well as some remote Administration services) would be too expensive at this time.
Yet in order to succeed in business, especially in the Technology, Media and Telecommunications Sector, it is more and more vital to ‘keep up with the Joneses’, even if, at first, the technology is expensive to implement.
The above practices, or, where applicable the abstinence from the above practices are more likely to allow a company to succeed.