From a Ericsson vet: Whether the acquisition will help NSN expand in global scale with volumes that can help reduce costs, is yet to be seen.
Over the past several years Motorola's design wins have been in CDMA, WiMax, and TD-LTE which is different from the UMTS and FDD-LTE successes of NSN. Thus the equipment, hardware, and semiconductors are different which means integration, combining volumes, and leveraging synergies may not be that easy.
It is obviously a good move to grow market share and revenues. But in order to grow profits, costs will have to be driven down. Otherwise the acquisition could turn out to be a management challenge, and the low-cost infra manufacturers will continue to gain.
This is painful because it ultimately means that more technical influence will leaving US companies. That inevitably means more high tech jobs going overseas. In the old days, the different business units would be self supporting and indivually profitable. If times were tough, they could cozy up to Mommy Motorola for a lifeline. But they generally were given a pretty short leash. This allowed critical and upcoming technologies to be kept "in house" and certainly enabled a longer term view (I recall working on a 25 year roadmap!) Do I think that Motorola is doing the right thing for Motorola? Yes. Do I think that this is in the best interest for the US high tec industry... Mmmm. No.
Ok, here's one opinion from a Motorola vet. I think this move will be a win-win for both parties. At least for today, Wall Street seems to agree.
Looking farther down the road, I have to wonder how long the mobile handset business and cable TV/broadband business will remain together as Motorola Home. These are very different businesses that don't have any more synergies than any other two business units that Motorola has already divested, so a future breakup of Motorola Home would not surprise me.
One last comment. You mentioned Freescale as the result of Motorola spinning off it's semiconductor operations, but in fact Freescale was the second semiconductor company to come from that divestiture. The first was ON Semiconductor. I just thought that detail was worth mentioning.
NASA's Orion Flight Software Production Systems Manager Darrel G. Raines joins Planet Analog Editor Steve Taranovich and Embedded.com Editor Max Maxfield to talk about embedded flight software used in Orion Spacecraft, part of NASA's Mars mission. Live radio show and live chat. Get your questions ready.
Brought to you by