Do not worry, it always begins very small. But over time, any industry consolidates. ICT is going through that process now. Ever imagine why there are few choices for gas, water and electricity companies to choose from when you move into a new city or right in the one you live. It is simply called CONSOLIDATION. The ICT industry is evolving into that now. Soon, we will have three major OS in the mobile ecosystem: Android, iOS, Windows and (maybe WebOS). Blackberry is already history.
So, today, looking at Google’s plan that it will acquire Motorola’s handset business, Motorola Mobility, for $12.5 billion, it’s easy to understand Google’s motivation as well as to know that the consolidation is here. The deal will give Google a portfolio of patents, the ability to design hardware to accompany its mobile software (Android) and ensures that a significant mobile player (Motorola) stays out of its rivals’ (Microsoft, HP, etc.) clutches. Moreover, the purchase price won’t strain Google, which has approximately $39 billion in cash.
Forbes captured it simply brilliantly:
Tekedia Mini-MBA edition 14 (June 3 – Sept 2, 2024) begins registrations; get massive discounts with early registration here.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
Indeed, the mega-deals of Nokia/Microsoft and now Google/Motorola point up the extent to which the mobile industry is dividing into “ecosystems” organized around operating systems such as Android, Windows Phone and Apple’s iOS. Nokia CEO Stephen Elop has spoken time and again about this trend and says it is one of the chief reasons he decided to pair up with Microsoft on future smartphones.
Does it mean that you cannot open an ICT firm? Of course you can. But build it around these mega companies. Amazon, Microsoft, Google and maybe one other will soon host all our data in the cloud -just as the utility companies provide our energy needs. When you are starting a company today, you need not worry over those big serves; use the cloud. And very soon, the choices will narrow in other areas. More mega deals are coming and very soon ICT will become like utility boards with likes of Google, Microsoft and Amazon running them.