Google Piggyback On Motorola Mobility Into the Connected Home

  • Posted on: 15 August 2011
  • By: Patrick Oliphant

The connected home has become the new technology battle ground for the electronics and software giants; with a market stand to worth tens of billons of dollars, we are on the verge of a feeding frenzy. Today Google announced plans to acquire Motorola Mobility for $12.5 billion to become one of the biggest player in the connected home market. Bear in mind that it was just two months ago that Google abandon plans to continue to offer its PowerMeter service come 16 September this year. See why this acquisition is more than mobile phone and what is next?

In May Microsoft acquired Skype in a $8.5 billion cash deal. A move that receive many mix reaction from the public; this is what I saw then and think it is what Microsoft has in mind. As part from the integration of the Skype in to its Lynx server platform, the connected home hold a big opportunity for the Skype acquisition. As we move in the future real-time video and video communication will become for many on the move and within the home. Therefore, I think Microsoft is position it self to dominate the home domestic video communication market – just wait and see. Like Google Microsoft has discontinue is holm energy management solution as well.

So why Motorola Mobility? Along with its mobile communication, Motorola has established it self within the connected home market with the acquisition of 4Home; offering home automation and other connected home solutions. To date they have launched "Motorola Televation" a video streaming solution that allows customers to watch video content from anywhere in their home. Motorola has also partnered with Verizon to create their home monitoring and control service. They have also partnered with Honeywell to supply connected home security solutions.

By acquiring Motorola Mobility Google will substantiate its position in the connected home, putting  in direct competition with Apple not only on the connected TV platform but also on the connected home controls using the Android OS. According to Home Media Magazine, it was also pointed out by Ralph Schackart, digital media analyst with William Blair & Co. that “Motorola Mobility gives Google a new entrance point to the wide-open home consumer electronic market. Google has been trying to grow its nascent Google TV offering, but has struggled to date.”

Schackart also believes that because “Motorola Mobility manufactures Internet protocol-based set-top boxes for cable operators, notably AT&T’s U-Verse. Google now will be able to sell set-top boxes loaded with its Google TV operating system directly to cable operators.”

So you see; there might be some method behind this big spending by these software giants. I might be wrong but it looks very obvious to me. There is no hiding the fact that you and I will be spending billions over the next couple of year on gadgets and solution that will offer us the convenience of the connected home. So we cannot blame the likes of Google, Apple and Microsoft for wanting a share of this serious amount of money.