What The Google-Motorola Deal Means For The Tech Industry

Posted by in Technology


Image via CrunchBase
I'm sure that by now, you've heard that last week Google announced that they are buying Motorola Mobility for $12.5 billion dollars. It's big news, and while it isn't the most expensive acquisition of the year, many people in the tech industry are predicting that this will certainly be the most significant.

Ever since Google introduced the Android platform, it has had problems because although they provide the operating system, they don't actually have much control over the smart phone creation or marketing. In addition, there have been threats of patent lawsuits from Apple and others.

It was a smart deal for both parties and it could mean significant changes for the tech industry. Here are 4 things that will happen as a result of this acquisition:


  • No more patent wars - The Android system is growing in popularity and gaining market share. The only real threat to Android's continued success was the threat of patent lawsuits by Microsoft, Oracle and Apple. The lawsuit threats have been directed at Google and the Android partners like Samsung and HTC. If Google didn't have the ammunition to fight back, Android might have ended up being a flash in the pan. Now, with the 17,000 patents that Motorola holds, they will be mostly in the clear and able to threaten enough patent lawsuits to keep everyone off their back.
  • Google will have more control over Android devices - I'd like to think that Google purchased Motorola out of frustration. The Android system is great, but the company has little control over the design of the devices that run it. With this purchase, Google can design new devices that use Android to it's fullest potential. They already have the chromebook, and now they will be able to make smartphones and tablets that maximize their products.
  • The mobile marketplace will get more narrow - When it comes to smartphones, there has been Apple and then other phones by various companies. Once Google starts selling their own Google branded Android devices, Apple might start to lose market share. As more people adopt the Google devices, other manufacturers will lose market share as well. Many Android customers would chose the Google device as opposed to an Android device made by another manufacturer.

  • Google might mature - Google has always tried hard to keep the start-up atmosphere. In fact, they are famous for their work environment. Many people are suggesting that now that they have another company to run, they will have to lose the start-up vibe and grow into a traditional corporation. It may happen, but I'd like to think that they will try to keep their corporate culture and prove that you can be a grown up corporation without losing sight of your original mission statement.
What will happen, of course, remains to be seen, but I'm anxious to see what type of devices Google comes out with.

What do you think about this acquisition? Let me know in the comments.

By Melissa Kennedy- Melissa is a 9 year blog veteran and a freelance writer for TechCareersBlog. Along with helping others find the job of their dreams, she enjoys computer geekery, raising a teenager, supporting her local library, writing about herself in the third person and working on her next novel.

Comment

Become a member to take advantage of more features, like commenting and voting.

  • You Might Also Be Interested In

Jobs to Watch