Google-Motorola Is The First Integrated Cloud Empire

The acquisition of Motorola may be Google’s smartest move yet. As a result of the increasing patent pressure on Android, it is a decision that is easily understood and may benefit the entire mobile phone industry overall. Thousands of relevant patents can level the playing field in the mobile industry and turn Google into a platform company that quickly emerges from a vulnerable newbie to a powerful leader.

The acquisition has been primarily discussed with its potential impact on Android handset makers who appear all to be very pleased with this move, as it shows Google’s dedication to Android. At the very least, the acquisition can slow the kindergarden drama surrounding patent claims and suits and hopefully bring some common sense into an arena that threatened to disrupt every piece of innovation that drives this young market segment.

However, not to rain on the parade, Motorola may be insignificant in the smartphone as it barely sells 1 smartphone for every iPhone Apple sells, but the implication of adding hardware to a software and services-driven ecosystem is certainly a door that only Google can walk through at this time. Google is the first company that can control the entire digital distribution chain: The hardware adds to massive media online libraries, a social network, a payment system, an application store, cloud services and software as well as the core search engine. Microsoft lacks the hardware, reach at this time and direct access to a social network. Apple does not have search and not a social network. Motorola could enable Google to address the problem of Android fragmentation to develop a reference platform as a better guideline for Android handset manufacturers.

In every scenario, Motorola is a threat to Android handset makers, but an opportunity as well as it will increase the dominance of Android. It is unlikely that Apple will suffer: Microsoft and RIM may be the most vulnerable companies in the mobile phone space. But it is not just the handset industry. It is about everything and everyone who is competing with Google in an Google is Everything to everyone game. Facebook should be concerned about Google’s moves in the social media space, especially if it now has a phone platform to work with. Mozilla is already asking questions what the hidden secret in this deal is and how open Android can really stay in a game of corporate high-rollers.

Motorola has a very positive short-term impact on the smartphone industry for consumers. However, we should be looking at the long-term implications as well. Google has just opened a door with huge opportunity for the company that may leave others behind.