Disruption Diary: Google to Buy Motorola Mobility for $12.5 billion

Google's purchase of manufacturing partner Motorola Mobility is about to establish itself as the most favored hardware platform for the Android operating system. Even though Google CEO asserts (in a press release) that the join endeavor "will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers," it is a tacit acknowledgement that today's status quo for Android provides a user experience that is uneven at best. Some of the work by its developer network is brilliant, but thanks to its free-wheeling approach to application development and delivery (when compared to Apple's terms and conditions for its App Store) the overall experience falls short of "amazing."

Google is paying a 63% premium over the current stock price for Motorola Mobility. It is a statement that the company expects direct ownership of the manufacturer to accelerate scales and promote proliferation of the Android OS. But Google's management is underestimating the impact of its action on other manufacturers who have endorsed and support Android as they must now regard Google/Moto as a direct competitor and not just a benign endorser of an "open" OS. 

This post by long-time industry follower Mike Cane captures the probable outcome in the simple statement: "Google pulls a Zune." He refers to Microsoft's decision to begin making its own MP3 player after spending a few years endorsing and supporting the PlaysForSure digital rights management platform. Musicians and publishers who believed that Microsoft would stay "hardware agnostic" dealt with the news by understandably abandoning the product. HTC, Samsung and the other manufacturers in the Android camp must be looking more closely at alternatives. 

I agree with Mike Cane that this will lead other manufactuers to evaluate their OS strategy. It is a disruptive move that could benefit HP, for example. I very much like the idea of it creating a new market for WebOS as a licensed product for manufacturers who are now concentrating on boosting their Android sales. Market share projections under the old regime are almost meaningless.