So, the big news this week is the proposed acquisition of handset and tablet vendor Motorola Mobility by online giant Google. Lots has been written about the announcement, with some pundits saying it’s a good thing while others see Google losing the plot and splashing cash about just because it can. Here’s my take.
The arguments for the acquisition seem to fall into two camps, the first being a perceived need for Google to have its own hardware platform in order to compete with Apple on level terms. Which seems fair enough to me and all the more so given that the reputed $12 billion purchase price will hardly make a dent in Google’s cash reserves.
Those against, reckon it could upset existing handset vendors, like HTC and Samsung, with long standing agreements with Google who have been at the forefront when it comes to making the Android platform a success. But then they compete against Motorola any way and, if handled sensitively, Google’s ownership shouldn’t affect those relationships too much.
Moreover, ownership of the Motorola Xoom tablet has to be good news, if only to bring some sanity to the race to catch up with the seemingly unstoppable iPad.
Other arguments for the acquisition centre around the patents bundled in as part of the deal. As a relative newcomer to the smartphone world Google is continually falling foul of patent disputes. The back catalogue of Motorola patents won’t make those disputes go away, but they will limit what the competition can challenge in future as well as add to Google’s credibility in both smartphone and tablet markets.
Overall I think it’s a good move, but I could be wrong. Only time will tell.
This article is written by Alan Stevens and sponsored by Avaya. The opinions reflected in this piece are solely those of Alan Stevens and may not reflect those of Avaya management