Tuesday, 16 August 2011

Another POV of Google's Motorola buyout

Maybe Google's acquisition of Motorola Mobility is not a backpedal move at all. Some speculations on what Google have up their sleeve are Motorola's 'Ready for Business', which is the commercial brand for enterprise features within the Motorola Android Platform which include core mobile device management, mobile security and productivity tools. Google might use that to breach the corporate segment, and make Android a viable platform of choice for enterprise, depleting RIM's domination.

As we all know, Motorola is one of the major brands for Android devices. While said brand isn't particularly popular outside of US, it has a firm ground in the western market, but somehow it's not gaining much traction towards 'THE Android brand to get' as rapid as the Korean company: Samsung. Sure, MMI were the first with 2.0 Droids, and the first with 3.0 tablets, but even those weren't impactful enough to change the brand preference of general users, say, Galaxy S II, anyone?. Google's acquisition might be the answer to that.

While running Motorola as a separate business, Google can help Motorola to improve their hardware and software integration, and maybe help them with some AdSense advertising to give more exposure. Is it favorable among Open Handset Alliance members? Of course not. But will it help Android in the long run by not letting Motorola's Android division ran out of gas before the real war is even started.
Pricey bet? Indeed it is. $12.5 Billion, and within that amount, the patents alone valued for $8+ Billion. For some of us it might seem like pulling rabbit out of the hat since Google's revenue for the last two years sums up to roughly $12.2 Billion, but they must've had some spare cash to splurge on some pretty important buyout such as this, right?

And last but not least, the main concern for GOOG nowadays is that in this war for patent infringements and mobile companies high on a suing spree, they have less than 1500 patents, and most of which don't have anything to do with the mobile platform. By purchasing Motorola Mobility, they have secured patent assets that will (hopefully) help them defend the Android from patent lawsuits. Sure, Nortel's sinking ship brought an estimated 6000 patents treasure cove on the table, which was won by a rather unique consortium comprised of Apple, RIM and Microsoft, but Moto's 17000 patents add another 7500 patent applications are not something to scoff at.

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