Monday, August 15, 2011

Google to buy Motorola Mobility for $12.5 billion

Hello Google

Google announced today that they are to buy Motorola Mobility for $12.5 billion, its biggest deal to date. A really interesting move.

People at Google, or more at Motorola, might be pumped up by this deal. But let's be real, could this be overrated?

First, the deal creates major channel conflict - Google is now competing with its partners such as Samsung and HTC, two of the leading Android-based smartphone makers. What will happen when once a partner now turning to be your competitor? Although Samsung has BADA system, but it's really far too late to switch to another platform.

Second, Android OS is very fragmented, as oppose to Apple's integrated hardware-software solution. It has many combination of different versions, and many different customizations by different hardware providers. So this move could mean Google's is following Apple's footstep or they're throwing away their only differentiation to Apple.

Third, would Microsoft be calling up HTC or Nokia now? Or they're smiling to see themselves as the only independent software for smartphone makers, just like their PC-OS model?

Forth, Google is eating up an elephant - a company with 19,000 employees! Its business is different, its process is different, its objective is different, its culture is different. Can Google manage that?

I'm not trying to be pessimistic about this deal, it just happens to be raising more questions and challenges than answers. But, we've seen Google pulled off a lot of challenges, this might just be another great bold move taken by the Internet giant now making its move to the new mobile world.

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