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Silicon Valley Values Shift To Customersploitation

theodp writes "Bill Davidow is the real Silicon Valley deal. Commenting on how Silicon Valley has changed over the decades, Davidow is not impressed, dishing out harsh words for Facebook, Apple, Google, and others. 'When corporate leaders pursue wealth in the winner-take-all Internet environment,' concludes Davidow, 'companies dance on the edge of acceptable behavior. If they don't take it to the limit, a competitor will. That competitor will become the dominant supplier — one monopoly will replace another. And when you engage in these activities you get a different set of Valley values: the values of customer exploitation.'"

20 of 244 comments (clear)

  1. "Customersploitation" by Chrisq · · Score: 4, Insightful

    come on - give me a break.

    1. Re:"Customersploitation" by Quiet_Desperation · · Score: 4, Funny

      Sufferin' succotash, my brain will *only* imagine the word "Customerspliotation" as being spoken by Daffy Duck in a spray of saliva.

  2. Customerspliotation? by sanosuke001 · · Score: 4, Informative

    Customerspliotation? Are you fucking kidding me? Blogosphere was bad enough. Internet, stop making up stupid words.

    --
    -SaNo
    1. Re:Customerspliotation? by idontgno · · Score: 4, Funny

      Oh, it wasn't the Internet (particularly). The portmanteau bastardized blechery in the summary and title here aren't in TFA at all.

      It was just world-famous Slashdot editorial practice at work. They can't rein in dupes, create an unbiased and non-sensationalist headline, or fix actual errors in copy from submitter (or themselves)... but the sure as hell can coin pointless and cringe-inducing neologisms.

      Slashdot editing at its shining best.

      --
      Welcome to the Panopticon. Used to be a prison, now it's your home.
    2. Re:Customerspliotation? by Quiet_Desperation · · Score: 4, Funny

      Or a neoportmanteaulogism.

    3. Re:Customerspliotation? by TapeCutter · · Score: 4, Funny

      portmanteau bastardized

      Is that something one would do with hot grits?

      --
      And did you exchange a walk on part in the war for a lead role in a cage? - Pink Floyd.
  3. Duh by Anonymous Coward · · Score: 5, Insightful

    The incentive to create a business is to make money. Once your market saturation crosses a tipping point, the only way to further increase profits is to exploit, rather than serve your market. So you engage in monopolization, rent-seeking, and so on.

    This is how business has always worked. This is an entirely predictable outcome of basic human nature. It should not be surprising at all. Nor, for the most part, should it be upsetting. We should simply expect that once the businesses get huge like this, we will have to either break them up or heap some government regulation on them in order to protect ourselves from them. We will *always* have to do this, so, let's get busy.

    1. Re:Duh by Anonymous Coward · · Score: 5, Insightful

      Adapt to what? The fact that you basically own the market? That doesn't make sense.

      You want to extract more profit from a market that almost entirely buys from you already. Spending company resources on busting into brand-new markets is high risk with an unclear potential payoff. Adjusting your offerings such that people must pay more for the same service, or adjusting the law such that it is even more expensive (or illegal) to use alternatives, is far less risky with clearer gains.

      The choice is obvious.

    2. Re:Duh by next_ghost · · Score: 3, Interesting

      Google was 1997 and Lycos was 1994. Mod parent down.

      That's the company founding date. Lycos got a web search engine in 1998 when it acquired HotBot. HotBot launched in May 1996. Meanwhile, Google was in development since January 1996 and started first experiments with crawling the web in March 1996. The proof of concept system was working by August 1996. The domain google.com was registered in September 1997 and the company itself was founded a year later.

      And the most important thing: The only other search engine that was using backlinks to rank search results before September 1998 was RankDex. Ever heard of it? Crawler bots were NOT the killer feature of web search engines. Backlink-based ranking was.

  4. Hmm ... sounds familiar. by richg74 · · Score: 5, Interesting

    My first reaction to this article was a wry smile" "I think I've heard this story before." I spent 30+ years working in IT on Wall Street, and saw that industry change from relationship-oriented to a almost complete focus on short-term transactions. ("What have you done for me today?") IN both industries, there is a good deal below the surface that isn't visible, easily or at all, to the customer; that the customer often ends up getting screwed shouldn't really surprise anyone.

  5. Not likely by geek · · Score: 4, Insightful

    How are the exploited if they are signing up willingly? Trying to negate personal responsibility and play it off on the "evil corporation" is more played out than the buzzwords Davidow uses in his "blog."

    I agree companies take things a bit too far at times but like a wise man once said "It's a crime to let a sucker hang on to his money." I feel no worse for people being "exploited" by these companies than I do the banks that gambled on them.

    1. Re:Not likely by StatureOfLiberty · · Score: 5, Insightful

      "How are the exploited if they are signing up willingly?"

      I agree. But, I would add this.

      We have been busy educating the perfect consumer. One who always sees a want as being a need. One who can't perceive true value. One who cannot weigh risk vs. benefit. One who asks no questions and just forks over the money. Preferably in some recurring revenue fashion.

      We are educating perfect voters too. No analytical skills. Just cheerleaders willing to forward stupid emails and keep up with today's talking points at most. Then pull the straight ticket lever come election day. It is really sad.

  6. Re:ok, like IBM and others didn't exploit customer by alen · · Score: 3, Insightful

    nobody is forcing you to use facebook, google, twitter or any free internet service. i use them because i get value out of them.

    oh noes, facebook knows i liked the page of some women's perfume my wife likes. its so evil the perfume maker may even send me a custom coupon before my wife's birthday because they will have her info as well.

  7. Define 'exploited' by Picass0 · · Score: 4, Insightful

    Some people at slashdot look at Apple and it's walled garden app store and feel like Apple is creating a trapped audience who can only download what Apple feels is OK.

    And they are right. But some people who want a simple "it just works" device are willing to accept that model and they don't care about concepts like open source.

    I'll extend that to many of IT professionals who have spent years getting the dreaded "my computer is broken" phone calls. They have pointed friends and family in Apple's direction because... it's just works.

    Grandma doesn't build her own kernel. She doesn't see a walled garden. She sees a device that works without throwing a ton of alarming messages at her.

  8. It's computers, so it's completely new! by Guppy06 · · Score: 3, Interesting

    This is in no way similar to, say, my telephone number being sold or traded by businesses to telemarketers.

    This isn't new, and this isn't unique to IT.

  9. Craigslist by SidIncognito · · Score: 5, Interesting

    The more I think about, the more impressed I am by the Craigslist model. There is no constant addition of features just for the sake of appearing to do something or for the sake of growing revenues. That's a service that is truly focused on its users.

  10. You know what I am going to do about this? by Keyslapper · · Score: 4, Insightful

    "Nothing! Because if I take it to small claims court, it will just drain 8 hours out of my life and you probably won't show up and even if I got the judgment you'd just stiff me anyway; so what I am going to do is piss and moan like an impotent jerk, and then bend over and take it up the tailpipe!"
    -- Fletcher (Jim Carrey) "Liar, Liar"

    Different scenario, same outcome.

  11. Re:ok, like IBM and others didn't exploit customer by jrroche · · Score: 3, Informative

    Nobody forces anyone to go to work, stop at red lights, wear clothes outside, or the like either.

    Actually the police do (other than the going to work part).

    If I want to listen to Spotify or other services, guess what? They use FB for their access.

    Actually they don't. I have Spotify fully disconnected from Facebook.

  12. diff:customer,consumer by Ralph+Spoilsport · · Score: 3, Insightful
    There's a difference between a customer and a consumer, and I think that is what the article is dancing around. There is a political corrolary to this, the difference between a citizen and a tax payer. We can see how this devolution from citizen/customer to consumer/taxpayer has taken place. A customer has a relationship with the provider and has some agency with the provider. A consumer is more infantilised, more of a "feeder", and has less agency. This also feeds the monopolisation trend he discusses - customers are empowered to go elsewhere, consumers, less so. Consumers are happy with whatever gizmos the monopolists provide them, and have a dramatically different set of expectations than a customer does. Citizens are empowered and informed. They may not be correct (in my vision of the world, but, it takes all kinds...) but they are actively involved with their neighbourhoods, communities, localities and nation-states. Taxpayers are not. Taxpayers are consumers of government services and see themselves as alienated from the systems of service provision. And as consumers, they want what all infantilised consumers want:

    Something for nothing.

    Napster simply provided exactly what the consumer had been demanding all along and what was native to the enframing of digital technology itself: copies of data, for free (or nearly free). Something for nothing. A customer would have been much more wary of such a proposition, but consumers are like honey badgers, they don't give a shit.

    So, as interesting a lament as the article is, in fact, it points at large issues it cannot address (customer v. consumer) and also the disappearance of HP and its way of doing business. My wife worked at HP for 25 years, so I have some insight on this as well. The HP way started to collapse in the 1990s and took a BIG hit in 2001 with Carli Fiorina's incompetent reign at HP 1999 - 2006. She and her cohorts dismantled HP and the HP Way part by part, and basically gutted the company. Now it is basically a subsidiary of Compaq, even though it's called HP, most of the important decisions are coming out of Texas, not Palo Alto. I remember hearing back in 2000 how the HP way was under attack and people lamenting the "good old days" at HP. I think the article has a lot of that nostalgia clouding its view.

    How we get out of the infinite regress of infantile consumerism remains to be seen. I am thinking that when oil production goes into a permanent decline after 2017, that's going to evacuate a lot of wealth that was being pissed away on meaningless junk, and people will have to snap to attention and get on the stick or experience enormous suffering. At that point, the ICT industry will evolve customers and relationships. How that will evolve out of the massive monopolisation process from above seems unlikely, so I would think it will have to come from below as consumers empower themselves back into being customers working with companies to get (work/play/etc.) done, and then become citizens who are compassionate and contributing active members of a society instead of taxpayers griping about "the gubmint".

    --
    Shoes for Industry. Shoes for the Dead.
  13. Re:The way of nature. by kheldan · · Score: 3

    In a better world, we're more than just slightly smarter animals. More and more that's all people seem to be, is animals.

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    Are YOU using the TOOL, or is the TOOL using YOU? Think about it!