Google’s Buy-Out of Motorola Mobility Will Change the Tech Industry

Google’s $12.5 billion purchase of Motorola Mobility will significantly change our lives. How you ask? According to an article by Jason Hiner, ZDNet, there are 4 ways this acquision will impact the tech industry: the end of the patent wars, verticle integration, mobile consolidation, and the exponential growth of Google.

End of Patent Wars-Microsoft, Oracle, and Apple were tying Google up with litigations. With Motorola’s 17,000 patents, Google will now rule the Android Smartphone market, giving serious competition to its rivals, HTC and Samsung. Jason Hiner predicts there will still be some minor skirmishes, but the war is over.

Vertical Integration-Google is promising to keep Android an open ecosystem and run Motorola Mobility as a separate business. It’s also pretty clear that Google will build prototypes, concept hardware, and leading edge devices, to demonstrate its vision. Until they bought Motorola Mobility, Google didn’t have the hardware expertise or structure to really go into the hardware business. Now with its original 29,000 employees, and by adding Motorola Mobility’s 19,000 employees, which include those with hardware skills, Google is poised to become a hardware giant as well as a search engine giant.

Mobile Consolidation-With the expansion of mobile vendors, there are lots of choices for Smartphones and tablets. However, this year we have seen BlackBerry and Nokia lose market share, and Windows Phone 7 and WebOS are also in trouble. The market has been dominated by HTC, Samsung, and Motorola, however Motorola’s Q2 showed them struggling. Now that they will be part of Google, their future is looking up.

Growth of Google-Only a little more than a decade old as a company, Google has been an ideal company as an employer. Their offices are loosely organized and maintain a college campus style environment. They offer their employees free food, free transportation, and free personal services (cleaners, barbers, etc). Now with the addition of the 19,000 Motorola Mobility employees (who are much more structured), Google employees may see some changes coming down the pipe. In addition, since the search engine competition is growing, Google may have to expand more in other directions.

The bottom line is that Google’s 12.5 Billion acquisition of Motorola Mobility is a major event in the Tech Industry. It should have the competition shaking in their boots. And that can only be a good thing for consumers.

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