Traditional Internet companies are facing genetic

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Traditional Internet companies are facing the genetic conflict between themselves and the times

Abstract: the middle-aged crisis is a hurdle that all companies have to overcome. Even the star enterprises at present may step into it without knowing it. Therefore, the traditional giants can focus on production management and raw material inspection as a reflection of the future, which is also of great value

according to foreign technology media mspoweruser, the main supplier of hololens, Taiwan company Qijing optoelectronics, said in its financial report for the second quarter of fiscal 2017: "major ar equipment customers decided to stop producing products, resulting in the continuous reduction of LCOS and WLO shipments."

most people in the industry speculate that this customer is Microsoft, which developed the hololens helmet. After all, Intel also announced earlier that it would stop production of a chip called atomx5-z8100p at the end of the year, and Microsoft is the largest customer of this chip. For a while, the rumor that hololens stopped production has once again become an incentive to sing down Microsoft

there is no final conclusion whether to stop production or not, but there is no doubt that the frequent failures of Microsoft hardware have increasingly exposed the image of the once well deserved Internet overlord, who is struggling to develop new businesses. Coincidentally, in China, Lenovo is in this awkward position. Whether it is betting on AI or Liu Jun's return, it has not brought too much expectation to the market

this seems to reflect the common situation of the first generation of Internet giants. Intel, Cisco, HP, Oracle, etc. are all once first-class and now second-class, limited by the ultimate problem of getting rid of the middle-aged crisis

in 2007, HP surpassed Dell to become the world's No.1 manufacturer of high-quality experimental machine and equipment, which not only provided you with high-quality experimental machine and equipment, but also opened a decisive stage of both honor and decline. When Lenovo snatched the top position seven years later, HP had to be split up, and tens of thousands of employees were laid off for this reason, which showed a huge loss. However, Lenovo is not much better. It has tried hard to climb to the first throne, but it has just caught up with the last bus of the PC era. The loss of mobile business has added to the frustration of the enterprise

Intel missed the golden decade. Although the dominant PC and server chip market has been under pressure from competitors, it can at least maintain the title of the world's largest semiconductor company. Unfortunately, just a while ago, Samsung's semiconductor division earned $15.8 billion, surpassing Intel's chip sales of $14.76 billion

more than that, after Microsoft's several crises, layoffs have become the norm of the enterprise. However, Cisco has lost most of its cities under the shadow of Huawei, so it is difficult to have the power to fight back. Yahoo, once the most dazzling company, is now plagued with negativity and sorrow for life and death

it can be seen that these giants who used to be at the forefront of the Internet era have entered their own "middle-aged crisis" step by step. Some have even become history or are on the verge of extinction. Just as gates described Microsoft, it is only 18 months from bankruptcy. Moore's law over the past 18 months has proved that the market has changed and replaced countless times, and consumers are accustomed to the transformation between glory and decline. They will only look forward with regret, and all things that are not active in front of them are called obsolete

this is the tragedy of Microsoft. As a survivor of the PC era, they can only watch the wave of mobile Internet rolling forward and sigh

in fact, if you look closely, the decline of HP, Lenovo, Microsoft and other enterprises is nothing more than the depression of personal computers. In particular, their core businesses are extremely dependent on the hardware itself, unlike those transactions and products that use it as a channel or carrier, they easily move to the mobile end. In other words, it is the genetic determinism that Wu Jun once explained

according to his description, every company has its own gene, which is difficult to change, and the fate of the company is closely related to its gene. For example, IBM, which serves large enterprises, is hard to do a good job in consumer facing products such as personal computers. Microsoft, a traditional software company, is hard to do a good job in Internet services. Therefore, most giants miss the opportunity, not just because of wrong decisions or short sightedness

at the same time, there is a more cruel fact that an era usually creates a company of its own era, rather than continuing to build a company of the previous era. In other words, the enterprise gene is inconsistent with the era gene, and can only tend to lag behind to a large extent

the traditional Internet companies are generally falling behind in this difficult genetic judgment, but even so, it may not mean that there is no chance of a comeback

from Lenovo to Microsoft, the old giants can not escape the curse of the middle-aged crisis

according to the survey conducted by management professors charlesstebart and Michael knight on more than 6million companies, only a few of them can live for more than 40 years. Moreover, considering the shortening of the time for technological breakthroughs, even the age of 40 seems to be a difficult number to achieve. Of course, even if the industry monopoly giants lose power, they can still rely on their past accumulation and last longer, so their life span should be relatively extended

according to this calculation, in about 20 years, Internet companies have almost begun to enter the so-called middle-aged crisis, or even shorter. For example, Microsoft was investigated by antitrust authorities around 1995. Its stock market value hit a record of $620.58 billion in 1999, and then plummeted. It was said that after its success, it was in danger. At that time, Microsoft was nearly 20 years old. In 2000, Cisco overtook Microsoft as fast as possible to become the company with the highest market value in the world. However, in just one year, Cisco's share price has dropped by 64%. If this is the starting point, it will take 15 years

it can be seen that the first generation of Internet giants have collectively stepped into the curse of the middle-aged crisis at a certain time. Coupled with the changes of the times, many have fallen. However, even so, the survivors can still show different development states under this dual pressure, some are gradually rising, and some are still unable to reverse the decline, which is inseparable from one word - transformation

take Lenovo and Microsoft for example, because they, as international and domestic representative enterprises struggling for a long time in the middle-aged crisis, have many things in common, but also show different progress tracks

on the one hand, both Microsoft and Lenovo, as industry leaders in PC software and hardware, have been criticized for a long time due to the damage of their core businesses under the impact of mobile Internet, and other businesses trying to break the situation are difficult to shake the existing market pattern. On the other hand, as a member of the declining aristocracy, he turned his attention to the same field and began to bet on the future of AI

however, despite this, Microsoft has rebounded and Lenovo has continued to decline. These two diametrically opposite trends still show a different turn in the midlife crisis

with regard to the reasons for the decline of Microsoft, several Microsoft executives believe that their excessive preference for the two major products of Windows operating system and office office suite has led the company to miss the great opportunity to use new technologies again and again. It is this excessive persistence that makes the genes of software companies deeply rooted

when the build 2017 developer conference was held, the windows part was simply mentioned, and no attention was paid to it. It can be seen that this sudden repentance has confirmed that the two main products, intelligent cloud and artificial intelligence, are becoming the next growth point of Microsoft. In particular, after 17 years, the market value of Microsoft has rebounded to $500billion again, second only to apple and Google, largely due to cloud services favored by the industry

although it is hard to say that Microsoft has grasped the straw leading to the future, it can be clearly seen that the key to breaking through the restriction of genetic determinism is to reshape genes. For Microsoft, at least it has found a new opportunity for rebirth in cloud services. Lenovo, on the other hand, has changed from profit to loss and lost its first position. Such pressures can only make it take a big shot in the AI industry, but in fact, the direction has not been determined

although they are a hundred footed insects, will luck still favor these declining "aristocrats"

stingy in appreciation and harsh in fault are the similar attitudes of public opinion towards the majority of declining aristocrats

after a lapse of four years, HP has surpassed Lenovo for two consecutive quarters and returned to the first place. However, many people ignore the changes in the adverse trend under the PC downturn; Cisco is faced with the huge impact of the 9% decline in the revenue of both switch and router services, so that the outside world lingers on the myth of reshaping Huawei and fails to see its strong growth in security services

it is better than Microsoft and Intel. This is also the case. It must be said that some absurd arguments have reached the level of unthinking and hitting the bottom of the well. This is obviously extremely unwise. You know, today's Internet giants were only budding quietly in a corner, but now they lack the corresponding tolerance for these declining people

a hundred people die without being stiff. It is often used to describe the state between life and death of traditional Internet giants, but it is not a bad thing for them. This means that even if only part of the essence of a behemoth is left, it is possible to drive the operation of the enterprise again. Behind it are two elements, luck and accumulation

in fact, it is generally recognized that almost all traditional giants will consume their original advantages in the declining performance, and it is only a question of when they will die in the end. However, as veterans who have lasted for decades, they will always accumulate some advantages as capital for turnover, especially for finding new breakthroughs

for example, in terms of cash reserves, according to the fourth quarter enterprise documents compiled by UBS group, Microsoft hoarded $124billion in profits outside the United States last year, ranking first among the constituent companies of the S & P 500 index. Intel, Oracle and other companies are on the list, and even Lenovo has more than $3billion in cash reserves

of course, this is only the second. Luck is the core for Internet companies to survive the crisis. On the one hand, when the next wave comes, everything will be easily solved. However, the giants who have lagged behind for a long time should not only be limited by their own big company diseases, but also the current overlords who are gaining momentum. 3 It is the dominant party to strengthen technological transformation. However, as for the relatively erratic but extremely important factor of luck, it can not be completely denied that it is possible for it to care for the declining again. Most giants have made a turnaround from large and small crises

on the other hand, it is the helmsman who can bring luck to the traditional giants, and it is also his great luck to obtain an appropriate reformer. For example, in 2014, the market value of Microsoft was less than $300billion. In less than three years, the market value returned to above $500billion, ranking third in the world. This is largely due to NADELLA. On the contrary, Lenovo has been losing ground and making mistakes, and Yang Yuanqing has become the culprit

in a word, rather than focusing too much on the decline of traditional Internet companies, it is better to keep a bit of rational optimism in the trend that bad mouthing has become politically correct

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