The technology world is in a bit of shocked state after a few interesting moves by two major players. Both Google and Hewlett-Packard made major decisions to change business strategies. While Google is entering the world of smartphones and hardware, HP is shifting from a consumer based focus into a more streamlined business focus. While each company is no doubt confident of their ability, both face significant risks in the shifts.
For Google the $12.5 billion purchase of Motorola Mobility, gives the Internet search giant the ability to penetrate even further into the smartphone and tablet PC world. In addition, Google can increase the visibility of their Android operating system. While the strategy Google is taking is extremely similar to their chief rival Apple, for the initial foray into the hardware world Google has picked a pretty good company to purchase.
Hewlett-Packard has announced they are leaving the consumer hardware circle. The huge maker of several different devices grew to massive proportions after purchasing a few competitors years ago. The company will no longer manufacture tablet PCs and smartphones, which are currently two of the hottest product trends in the tech world. Plus, rumors are flying that HP wants out of the computer making business as well.
The moves are risky for both companies for similar reasons. Primarily because shifting from what a company knows it can do well into a business that it is not completely sure about can result in a lot of chaos. However, Google has a lot on the table with regards to integrating their software with hardware that they design, which means the payoff can be huge. HP is trying to restructure itself because competition is only going to heat up in different tech product categories.
While both moves are probably months, if not years away, from being considered winners or losers, the technology world gains a company with a lot of money to spend at the same time it is losing a company that helped make it what it is today. The particular gains for consumers will be felt when the first Google devices become available.
While Google is clearly going to try to go toe-to-toe with Apple, HP is going to emulate IBM and other tech companies. Shifts in focus seem to be the order of the day in the technology world, whether or not they are the right shifts remain to be seen.