By Acquiring Motorola, Google positions itself to take aim at the mobile market.
To me the most important thing is the price. This is not the price that Google pays for Motorola. It is the price that Google pays for its vision. It gives you a good idea of what is at stake in mobiles.
Below are some of the important factors in play behind this acquisition.
The patent game
My guess is that Moto has been acquired not only for its present patents, but for the potential patents that Moto will produce over the decades. Google has clearly realized that they should be investing on the future patents, else the platform as a whole will be in danger of litigation.
Partners
It is a clear FUD when they say that the partners are going to ditch Android. It is because the game is an inclusive game. That is Samsung makes billions, HTC makes billions. The only company to loose cos of Android is Motorola. So if you are a businessman, you would not kill the golden goose because a loss making company is acquired. Even if they don’t like Android, they have to produce the best Android device on the market. Else they risk loosing out.
Samsung is doing business with Apple, supplying parts, while it is getting sued by it. Why? Because no one will want to loose out on business. It is not about emotions, it is about money.
Android is/was never about being the best phone. Android is more of about the variety. Manufacturers know how to compete in this market.
Goal
The goal of Google is not to cash in on the device money. But it is trying to put itself in a position so that it can monetize from the platform. Google’s vision is a world full of gadgets powered by Android. That is why the game is so high stake. That is why every one wants to kill off Android.
Google wants Android to be the universal gadget OS. From your TV, to Fridge, to cars, to your security system. They want Android foot print in all of them. That is why the recent hardware push is so important. Moto might be no more producing just phones, but probably open standard for hardware design and implementation.
In the long run, Mobile is going to be a high stakes game, and Google is playing it well.
