Google Will Be Like Apple With Vertical Integration of Hardware and Software

By J. Gerry Purdy  |  Posted 2011-11-23 Print this article Print


However, Google felt it needed to have more control over the development of smartphones, tablets and other mobile devices. Google executives also wanted a place where they could test new Android concepts. Andy Rubin and other Google executives likely discussed their need to have a closer relationship with at least one mobile-device manufacturer. Someone in a meeting perhaps commented whimsically, "Well, we could go out and buy one of them." And the rest, as they say, is history.

Now, with Motorola Mobility running as a wholly owned subsidiary of Google, here are some of the things we can expect to happen:

  • Google will have a direct say in what products are built and the features in each product.
  • Motorola will make a lot of recommendations on the future of Android.
  • Through Motorola, Google will have a design test-bed in which it can test new Android concepts.
  • Motorola will take more risks and develop a number of innovative mobile products. One example might be an Internet data-only device that does not include cellular voice technology but enables voice call through voice over IP-think "Skype phone." Another possibility is devices for specific vertical markets such as health care.
  • Android will become a better mobile OS with synergies happening between executives at both Google and Motorola.
  • Motorola will likely offer a number of Google assets, such as cloud services, Google Music, Google books, the integration of Google Wallet and Google Offers, and ways to manage rich media through Picasa. In this manner, Google will end up operating more like Apple and Amazon, and have the ability to better integrate its own content and services into future devices.
  • And finally, through this acquisition of Motorola, Google is going to end up operating more like Apple where software and hardware are clearly integrated. Now, Google is producing both software (Android) and hardware (via Motorola).
While it's easy for many to say that Google's Motorola acquisition will allow Motorola to have preferential treatment at the expense of other smartphone manufacturers, there is much more to the story.

Google's deal for Motorola will create a whole new field of synergies between Android software, Google's search and cloud applications and the actual hardware itself. The result will be better and more creative devices that have the potential to benefit both business users and consumers, while making Google more competitive against the likes of Apple, Amazon and Microsoft.

This deal allows Google to operate, overall, more like Apple with vertical integration of hardware and software.


J. Gerry Purdy, Ph.D., is Principal Analyst of Mobile & Wireless at MobileTrax LLC.
Dr. Purdy has been covering mobile, wireless, cloud & enterprise for the past 20+ years. He writes analysis and recommendations each week in an easy-to-read manner that helps people better understand important technology issues and assist them in making better technology purchasing decisions.

Disclosure Statement: From time to time, I may have a direct or indirect equity position in a company that is mentioned in a column. If that situation happens, then IÔÇÖll disclose it at that time.

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