Tuesday, August 16, 2011

google buy motorola to supercharge android?


The blog-o-sphere is abuzz with the news of google buying Motorola. Definitely a huge news-US$12.5 billion huge,to be exact;but the question is what is the reason of taking this decision?According to google,this will "supercharge Android." From a Google blog post

"Motorola’s total commitment to Android in mobile devices is one of many reasons that there is a natural fit between our two companies. Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers everywhere."

Most probably this is done to acquire the patent portfolio of Motorola. The acquisition of over 12,000 patents-with another 7,000 in the pipeline-is Google's way of restoring the balance of power. This is also claimed in the previously mentioned blog post. According to the post,Google will be running Motorola as a separate business and Motorola will remain a licensee to Android.
But seriously is this possible. You have an option of improving your own hardware and you are not acting upon it!!!!!!!!!!!!!!And if you are acting upon it,you are going to alienate your other members or licensees. If other android licensee feels threatened by this move,even after google's repeated assurances,what will happen then?
And if patent is the reason for acquiring,why Motorola? After all,Motorola is already facing patent litigation from Microsoft. If truly,Motorola has so many patents to counter them,then why are not they using those to rub it in the face of Microsoft?And if they do not have that much important patents,then why are google paying US$12.5 billion at a 63% premium to Motorola?????????
Today,almost every major player in the world of personal technology is embroiled in a patent suit; sometimes with multiple companies. In the current scenario of intellectual property, it is believed that a healthy portfolio of patents can go a long way in corporate battles against competitors. A large collection of patents means that businesses can counter sue and force cross-licensing of technology, instead of paying royalties. When all companies are equally strong there is less litigation and more cross-licensing.
So,if google is doing this for the sake of those patents,that is understandable;but will this deal bring enough patents to counter Microsoft and apple?That is the billion dollar question now.
Only time could say whether this business deal is going to work for google or not!!!!!!!!!!lets hope for the best.