Google – The global IT pioneer with many products to its credit right from search engines to global mapping services, takes over Motorola Mobility (a dedicated Android partner) which has nearly 30 years of strong presence in hardware technologies. Google goes ahead to acquire Motorola Mobility in spite of huge loss reported by Motorola Mobility Holding Inc in second quarter. When Google plays such a high premium to capture Moto, it should have strong expectations from this new amalgamation. And more often than now, Google’s long list of acquisitions stands testimony to it’s growth record.
Larry Page, CEO of Google hints that this acquisition will lead towards the rapid growth of android platform based mobiles devices. Google should have perceived the tremendous potential of hand-held sleek devices which competes with netbooks in terms of provision of features and applications, easy to carry and with great looks. Androids are temping and younger generation and business class. Android phones had a great success in US and Europe and spreading other continents at a fast pace. With well above 100,000 mobile applications in its pool and the coming hardware patents being added up with Motorola Mobility acquisition, it is highly probable that Google might be both leading the Android application and development market or set an altogether new direction compelling others to follow.
New development is welcomed by Android industry which believes the merge as reconfirmation of Google’s commitment in leveraging the developmental efforts towards robust, powerful and innovative Android systems while maintaining the status-quo with its partners.
How does this benefit Google? Patents in short! With this buy out, Google gets to lay their hands on Motorola’s Patent pool, and in turn strengthen their patent portfolio. This can help them better defend themselves and their customers from Patent issues.
While the acquisition process is complex and may take about 5 or 6 months time, it will draw many new equations in the existing market players including Samsung and HTC which have launched new series based on Android by closely partnering with Google. It will be interesting to see how Google will maintain relations with existing partners and how it promotes Android phones through Motorola Mobility. As far as Google is concerned, they will continue to offer Android as an open platform and fresh Android licensing will be routed through Moto. Google also mentioned that in their blog post that they will run Motorola’s division as a separate business, and Motorola would remain an Android Licencee. This is a strategic move on their part to send a message to their existing partners that they won’t be cannibalizing on their success on the Android platform. Even with that said, this move could possibly sabotage their relations with their partners like HTC and Samsung.
It will take few more months to find the real motive behind Google’s acquisition of Motorola Mobility. Regardless of the criticism from some section of the industry that Google went for acquisition only for the cause of gaining Motorola patents, consumers can expect better Android phones and other devices. Criticism is justified in the sense that at one time Google spoke against Apple and Microsoft when they pursued rights of Novell patents.
Nevertheless, Google’s unchallenged domain expertise in search engine industry along with its unique products and ventures with a strong backbone of innovative engineers will certainly help Google explore 30 years of hardware experience of Motorola Mobility. This new setup may lead to powerful mobile applications which facilitate Google a new opportunity and flexibility in creation of next Generation of devices using Android OS. The foundation is laid for a new revolution in Smartphones! Android phones have already challenged smartphones market once dominated by Symbian and the current acquisition may create new ripples in the smartphones market.