Google Making Huge Mobile Moves

google android motorola acquisitionThis morning, Google rolled out of bed and dropped a cool $12.5 billion on a new acquisition. Pocket change, right? Well, for the benefit they’ll get out of it, yes.

Google’s had issues in the mobile hardware arena. The necessity for a hardware component in their mobile strategy became increasingly apparent, and in a conference call early this morning, CEO Larry Page announced that they’d be acquiring Motorola Mobility.

This is huge for Google in several ways, and not so huge for Microsoft or Apple for the same reasons.

 

  • Apple has had success with the vertical integration model. Lots of it. It seems to work very well in the mobile space and profit margins are better. This type of structure for Android support going forward could prove a very effective solution to the lack of support on Google’s phones (Nexus) in the past.
  • Google gets a bunch of wireless patents. All the trifling lawsuits can go away now. This was a huge reason for the acquisition in the end, as no other potential acquisition candidate had a solid collection of patents.
  • TV!!! Motorola Mobility is the leader in cable TV boxes. No need to point out the obvious benefit here, look for Google TV to grow in a huge way now that they’ve got a hardware platform to start from.
  • Android will remain open sourced and it’s likely that Google will be able to keep its relationships with other hardware clients, like Samsung and HTC.
  • Poor, poor Microsoft, continuing to get dumped on. They may now be forced to make an (undesirable) acquisition now that Google’s made the move, in order to remain competitive in the new, vertically integrated competitive market.
  • Nokia, RIM: Not much is happening here. Look for Android and iOS to continue to be the only main dominant forces in mobile operating systems.

In a nutshell, this is a huge move for Google in the mobile war. They’ve solved several hardware issues, as well as laid the framework for quite a few new ventures and not to mention, probably have Apple a little bit worried. But just a little bit.

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google android motorola acquisitionThis morning, Google rolled out of bed and dropped a cool $12.5 billion on a new acquisition. Pocket change, right? Well, for the benefit they’ll get out of it, yes.

Google’s had issues in the mobile hardware arena. The necessity for a hardware component in their mobile strategy became increasingly apparent, and in a conference call early this morning, CEO Larry Page announced that they’d be acquiring Motorola Mobility.

This is huge for Google in several ways, and not so huge for Microsoft or Apple for the same reasons.

 

  • Apple has had success with the vertical integration model. Lots of it. It seems to work very well in the mobile space and profit margins are better. This type of structure for Android support going forward could prove a very effective solution to the lack of support on Google’s phones (Nexus) in the past.
  • Google gets a bunch of wireless patents. All the trifling lawsuits can go away now. This was a huge reason for the acquisition in the end, as no other potential acquisition candidate had a solid collection of patents.
  • TV!!! Motorola Mobility is the leader in cable TV boxes. No need to point out the obvious benefit here, look for Google TV to grow in a huge way now that they’ve got a hardware platform to start from.
  • Android will remain open sourced and it’s likely that Google will be able to keep its relationships with other hardware clients, like Samsung and HTC.
  • Poor, poor Microsoft, continuing to get dumped on. They may now be forced to make an (undesirable) acquisition now that Google’s made the move, in order to remain competitive in the new, vertically integrated competitive market.
  • Nokia, RIM: Not much is happening here. Look for Android and iOS to continue to be the only main dominant forces in mobile operating systems.

In a nutshell, this is a huge move for Google in the mobile war. They’ve solved several hardware issues, as well as laid the framework for quite a few new ventures and not to mention, probably have Apple a little bit worried. But just a little bit.

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