UPDATED 09:44 EDT / AUGUST 15 2011

5 Reasons Why the Google-Motorola Deal Has Big Business Written All Over It

One thing stands out in the posts I’ve read so far about Google buying Motorola Mobility.

The $12.5 billion purchase has big business written all over it. Google is making a huge play for the enterprise and sees Android as the way to get in. Motorola gives Android that enterprise credibility that Google needs for it to happen.

Here are five possibilities for what this mean for Google and the market:

  • The Google-Apple Wars. Google is readying for battle against Apple, which really does want to make a play for the enterprise. iPad adoption is on the same trajectory as the iPhone. With that kind of market strength, it would be difficult for Google to compete against Apple. Further, where does this put RIM? It’s  now a far more likely acquisition target. Nokia and Microsoft? Will we see more focus on Skype with integrated security that it can sell to enterprise customers?
  • Holy Buyout, Batman! Philippe Winthrop writes that Motorola has been making plays of its own which benefit enterprise customers:

There’s also another interesting twist to all this.  In January, Motorola Mobility announced its acquisition of 3LM – a company that makes Android “enterprise friendly.”  This was part of Motorola Mobility’s strategy of differentiating itself from other Android vendors by providing better tools for deploying Android devices in the enterprise.  The question becomes now, does the 3LM code get baked in to ALL Android devices or is this going to remain a Motorola property? (Remember that 3LM’s intent is to license its technology to other Android vendors)….heck take it a step further.  If Motorola is going to be run as a separate business, are they going to still try to license their IP to other Android OEMs or is that all moot now?

  • Google Apps has undoubtedly risen in value. For example, it will allow solutions providers to show the value of integrating archiving and security with Google Postini.
  •  The Android ecosystem is developing fast and companies will see the deal as an other reason to go with Google Apps over Office 365, which is too deeply tied into Microsoft’s proprietary operating system.
  • Expect a full suite of Android smartphones and tablets that are vertically integrated for the enterprise market.  With this we will see the growth of the enterprise app ecosystem. Those that stand to benefit include companies such as Yammer and Box, which have invested heavily in mobility capabilities. Again, this is where Google shines in comparison to Microsoft. Google has developed a developer ecosystem. Microsoft has ben far more cool about the app culture. We’ll see what they do with Mango.

Services Angle

It’s also evident that this could give Google the protection it needs from Oracle’s attempts to gain leverage through its patents. Google in many ways is creating a patent umbrella that it can use to protect its developer community, who need coverage to innovate in a services culture.

There are plenty of opportunities here for service providers. One thing is clear. It has gotten a lot more complicated for the CIO and CTO when determining a mobile strategy. The hardware and software integration means demand will only grow for services providers and those that can provide focused solutions capabilities.


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