Greed got us here today

There’s nothing wrong with making a decent profit – that’s what ensures sustainability and growth. But the relative size of profit to the turnover (ie the margin) is what got us into all the trouble we have today.  The greed of some individuals and some organisations has forced us into today’s recession and almost depression. What is so disturbing is how this has largely gone unchecked – most governments are now looking to more control over the financial sector to ensure that they don’t lose their way ever again. 

Dennis Howlett’s article today for that reason resonates with me. He draws a resounding similarity between the actions of the once great banking institutions and their fate, and the large software vendors of today.  I hope that Dennis doesn’t mind this direct quotation from his blog but it really sums up where we are.

“Denial is a common attribute of those who believe they are unassailable but as Wall Street discovered, no-one is too big to fail except through the complicity of those who let them continue. The applications vendor consolidation of the last five or so years was fine in the good times when the idea of having a single throat to choke seemed sensible. It led to what I believe is a corrupted industry that refuses to give customers relief. We’re living through disruptive economic conditions yet that doesn’t seem to impact the mega vendors’ relentless pursuit of Wall Street approval. That cannot be right. It cannot continue.”

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