Lenovo’s made three strategic moves in just one month: 1) Buying IBM’s x86 server business, 2) Reorging into four business units – most importantly including one called “ecosystem and cloud group”, and 3) Buying Motorola Mobility. The later two are driven by the mobile mind shift – the increasing expectation of individuals that they can access information and service, in context, in their moment of need. Smartphones are central to that – as are the ecosystem and cloud services that deliver value through the smartphones.
Lenovo has stated intentions to become a leading smartphone maker globally, building on their leading position in the China market. Buying Motorola Mobility is a much quicker way for Lenovo to access the premium smartphone market with a leading Google Android (not forked Android) offering - than trying to do it with their existing design teams and brand reach. Using Motorola, just as Lenovo used the IBM ThinkPad brand, to gain quick credibility and access to desirable markets, and built critical mass makes a lot of sense.
But Motorola has not been shooting the lights out with designs or sales volumes in smartphones. So the value is simply in brand recognition to achieve market recognition faster - and to dramatically expand the design and marketing team with talent experienced at US and Western markets.
It’s a couple of days after Google announced its intentions to jump headfirst into the hardware business. By now everyone — including my colleagues Charles Golvin and John McCarthy — have expressed their thoughts about what this means for Apple, Microsoft, RIM, and all of the Android-based smartphone manufacturers. This is not another one of those blog posts.
What I really want to highlight is something more profound, and more relevant to all of you out there who might classify your day job as “product strategy.” To you, the Google/Moto deal is just one signal — however faint — coming through the static noise of today’s M&As, IPOs, and new product launches. But if you tune in and listen carefully, two things become crystal clear:
The lines between entire industries are blurring. Google — and some of the other firms I mentioned above — are just high profile examples of companies that are diversifying their product portfolio, and the very industries in which they play. There are several instances of this over the past "digital decade." What's different now is the increased frequency of the occurrences.
Google sent shock waves through the mobile world this morning as it announced a planned acquisition of Motorola Mobility for $12.5 billion in cash. The initial commentary has largely focused around Motorola’s patent portfolio, how this will affect the other Android manufacturers, and what Google will do with the rest of Moto’s hardware business which my colleague John McCarthy summed up nicely in his blog post.
So what kind of an impact does this have on infrastructure and operations (I&O) professionals? For the most part, not much of one. I&O professionals are working to make their organizations platform-agnostic by deploying mobile device management (MDM) solutions. For them, Android is only one in an increasingly crowded space of platforms including iOS, Blackberry, and Windows 7 Mobile.
Still, there is one interesting implication in this deal that I&O pros should take note of — Google gets 3LM. Back in February Motorola Mobility acquired 3LM, a startup including former Google employees who worked on Android, which specializes in enterprise security and management software. Rumors had already been flying that some of the 3LM functionality like storage encryption and anti-malware would be included in the next version of Android (Ice Cream Sandwich). With 3LM now a part of Google, firms might finally management and security capabilities I&O and security pros have been asking for in Android.