Part 2. An interesting last few days in which Google adjusted it’s portfolio, ditching Motorola Mobility and acquiring the Intelligent Home company Nest.
Last Wednesday, Google agreed to sell its Motorola Mobility business to Lenovo for $2.9bn and taking a 6% stake in return, marking a retreat from its two-year foray into making Android handsets. That means it will no longer be a direct competitor to Samsung in mobile devices AND gaining a “friendly” Chinese Android fork in the process.
However by re-investing that Motorola cash in Nest for $3.2bn shows the emerging ecosystem of Connected Devices is strategically more important than the mature mobile market to future Google revenues. While the initial category is an estimated 50 million homes in the US with smart meters. The real play is put Google at the heart of connected devices. Maybe it is time for Google look again at the powermeter project they canned in 2011. Hardware-software integration anybody?