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elctrnx_lyf
No wonder the companies are afraid of not getting access to the latest Android ...
cdhmanning
Google have never expected or demanded exclusivity that I am aware of. If you ...
What Google/Moto means for Android OEMs
Rick Merritt
8/15/2011 3:53 PM EDT
The company faces the opposite problem with GoogleTV, its nascent effort to provide an open platform for Web-connected TVs and set-top boxes. It has worked to date with Sony and Logitech using Intel chips. Samsung and Vizio have GoogleTV products in the works, the company said at Google I/O earlier this year.
To date, Motorola has not emerged as a GoogleTV partner. It would be a strong candidate given its solid work on Android and its strong connection to carriers that have resisted GoogleTV to date. But given the acquisition, Google may feel a need to keep more distance.
The same may apply for Google's newly launched Android@Home initiative to help penetrate more consumer electronics products, including home automation systems.
In lieu of any concrete details Google and Motorola executives issued generic statements of being "excited" about work in areas such as set-top boxes.
Sanjay Jha, who will remain as chief executive of Motorola, said set-tops are going through a transition from QAM to IPTV protocols which play to Google's strengths. "There's a great convergence ahead between the mobile world and set tops," he said on the conference call.
Google's chief financial officer said the Motorola acquisition should be "mildly accretive the moment the deal closes" and will be handled as a separate business with segmented financial reporting. Given Google's poor experiences with its Nexus phones, Motorola's Droid smartphone managers should be glad the company will keep its distance.
But Wall Street analysts have already starting hammering Google execs about getting into a "non-core business" with Motorola. They know such hardware businesses with their complex supply chains and rapid product cycles are anathema to Web companies today.
The analysts likely will exert strong pressure when hardware profits do not keep pace with those of the Web giant.
It remains to be seen just how Google will balance the very different dynamics of Web and hardware businesses. Indeed, it would seem insofar as Motorola does open the door to any corporate synergies, Google will only be able to take advantage of them at the expense of its relationships with competing Android OEMs.
Motorola employees can now rejoice at being part of the Internet giant, one of the most sought-after employers in Silicon Valley. Most likely the biggest celebrations will be with their competitors.
Apple, Microsoft and others fighting the on-rush of Android likely are pleased to see disrupted Google's business model of being a neutral supplier of free mobile software. It is not the legal victory they were seeking, but it nevertheless represents a formidable set of new challenges to Android's continued success.
In the end, Larry Page's tenure as chief executive and the future of Android may be measured by the outcome of his bold bid for Motorola's patents.
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Frank Eory
8/15/2011 4:29 PM EDT
"It is hard enough herding all the Android cats without owning one of them." That just about says it all.
Despite the happy sounding press releases, the other Android partners have got to be feeling a bit like they're getting shafted by this deal.
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CamilleK
8/15/2011 7:48 PM EDT
Google can walk and chew gum at the same time. It is not like they got into totally unrelated businesses. If you think about it, they are pulling an Apple vertical integration and an Android ecosystem development at the same time. Just like light can exhibit particle and wave features, G can be soft and hard ware featured. Moto already competed with HTC and Samsung, why would this be any different? (other than more resources). Now it is GoMoTo. I think there is a bigger picture here. The grand unification of handset/TV hardware delivered over the net. Content at your fingertips and on your screen. I think the worry should not be over Android. The worry should be coming from cable providers/phone carriers. AppleCast or GoogleCast might be: buy my gear, content access is free or buy my content access, gear is free. I am sure there are some FCC technicalities to overcome, but multiple all-in-one-stop options (cell/broadband/internet access) from many sources can be good for the consumer.
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Jeff.Petro
8/16/2011 6:23 PM EDT
I think you hit the nail on the head with this one. Convergence of handset/tv hardware has already started and can only get bigger. TV as we traditionally know it is dying and the void is being filled by online content. Mobile TV appears to be the next big thing. I'm sure the next Moto/Google phone will head in this direction
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goafrit
8/15/2011 9:50 PM EDT
My happiness in this is that lawyers have lost. It is that simple. No Google can play defense and also offense. But this statement probably will change
"Google is saying all the right things: It will make no changes in how it manages access to Android, and it vows to run Motorola as a separate company. But with both efforts, the devil is in the details."
It will leave the best for its Motorola engineers
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cdhmanning
8/15/2011 10:13 PM EDT
If anyone loses it will be Microsoft.
Microsoft gets hundreds of millions of $ per year out of the fees they charge various Android manufacturers for supposedly infringing on MS patents. This is way bigger than the money MS makes from actually selling any mobile products.
Moto has thus far had the cojones to tell MS to get lost.
This deal will hopefully get MS to back down and let Android progress unencumbered.
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GREAT-Terry
8/16/2011 5:09 AM EDT
I think Google is moving towards the model of Apple. Apple is a showcase of how the post-web age business be done. Google, being a software leader should also find it hard to earn money by just claiming everything to be open-source and just hope the business be expanded and they cash flow in. That doesn't make much sense to me. Apple, on the other hand, even though the software is not open, this company manage to build everything from hardware to software and then marketing so people see a unique ICON and are pleased for its stability. So, money flows in! Not only with hardware (frankly this won't be the big cash cow), but also comes with the apps dollar! The company then can be healthy grow by carefully manage the product roadmap with the hi-tech trend. The service finally also get paid off so the whole business looks healthy now. At least you won't count on the kick rate, advertisement those kind of blur idea! Google now search the way to manage the hardware and I believe that will finally hurt Samsung, HTC and LG.
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selinz
8/16/2011 11:22 AM EDT
Well, I think Samsung's patent problems with Apple just went away because of the Google purchase. I'd say that Samsung would be happy about that. Motorola was just getting to be lean and mean and now that just got transfused with a bunch of cash. Is that likeley to help or hurt? I dunno. For the Motorola stock owners, their lives will improve in the short term, no doubt!
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LarryM99
8/16/2011 1:12 PM EDT
I think that the other Android licensees are going to end up winning from this deal. I see Google quietly killing Moto's manufacturing capability for handsets and moving it more to Qualcomm's model of being an IP house. Google gets their IP portfolio out of the deal and the capability to do reference designs for hardware platforms and prunes back the Android ecosystem in the process. They are certainly not going to move to Apple's vertical structure where they try to do it all and hog the market.
Larry M.
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tb1
8/16/2011 10:16 PM EDT
Apple is suing Samsung and HTC for their Android products. If they are successful, they could halt Android in its tracks.
Motorola has a large number of basic cell phone patents. It is presently suing Apple and Microsoft over them. This buyout gives Google the leverage it needs to stop Apple's lawsuits.
Motorola also has a number of MPEG patents, which Google could use in its battle with the MPEG consortium.
The smartest thing they could do is spin off the cell phone division (minus the patents) as quickly as possible.
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tb1
8/16/2011 10:20 PM EDT
Another thought:
Google's biggest fault is its arrogance. Remember Buzz? Checkout? (which still exists, though it pales in comparison with Paypal--mainly because Google insists on exclusivity with vendors, which makes them laugh).
If their arrogance takes over, they may not sell off the Motorola phone business, which would be a typical Google disaster.,
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cdhmanning
8/17/2011 4:35 PM EDT
Google have never expected or demanded exclusivity that I am aware of. If you have examples, then please supply them.
HTC manufactures Android phones and WinPhone phones. No problems.
Google allows people to buy advertising from Bing. No problems.
Youtube (Owned by google) will take you to itunes to buy songs. No problem.
Google has experimented in many areas. Some have worked and some have not. What is great is that they are trying alternatives and are prepared to take risks.
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rick.merritt
8/16/2011 11:21 PM EDT
@tb1 I would not call Google arrogant. Maybe I am being charitable but I think they are not afraid to try new things (like Wave) then toss them if they don't catch on. The down side is it hurts their credibility when they come out with te next next big thing.
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tb1
8/17/2011 2:11 AM EDT
Maybe I overstated it a bit--I shouldn't say 'typical Google disaster', but more 'typical of Google's occasional misfires'.
And they are quick to realize when they have a miss and move on.
But with Buzz they were thinking more of themselves than their customers. I'm hoping that with Motorola they don't think more of themselves than their partners, or it will be a lot worse than a misfire.
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daleste
8/17/2011 8:56 AM EDT
Google is very good at thinking outside of the box. They do come up with some ideas that don't pan out, but at least they are willing to take chances that other companies will never consider. I hope some of that rubs off on Mot. Maybe they will get back some of what they lost.
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elctrnx_lyf
8/18/2011 10:43 AM EDT
No wonder the companies are afraid of not getting access to the latest Android OS if Google acquires Motorola. Also Google will directly compete with the other licensees of Android. Is it acceptable?
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